Dáil Éireann Debate, Tuesday - 18 November 2014
191. Deputy Brendan Griffin asked the Minister for Finance his views on correspondence (details supplied) regarding shareholders' return of value; if he will assist in any way; and if he will make a statement on the matter. [44325/14]
View answerI introduced a measure of relief in this year's Finance Bill to cater for small shareholders who in February last unintentionally made the incorrect choice in responding to the Vodafone return of value document as a result of which they could have an income tax liability as opposed to having no capital gains tax liability. The measure being introduced treats individual shareholders who received €1,000 or less from Vodafone as being subject to capital gains tax rules even if they unintentionally made the incorrect choice.
The relief is primarily aimed at small shareholders whose Vodafone shares have their origin in the acquisition of Eircom shares back in 1999. Many of these people were not professional investors, who invested small sums and who, even after the return of value, have made a loss on their original investment. They will not pay any capital gains tax on the €1,000 (or less) received. It should be noted that a return of value of €1,000 in the case of an original Eircom shareholder implies an original investment of about €7,400. I believe this is an appropriate cut-off point for the proposed relief.
The circumstances described in the correspondence do not come within the terms of the proposed legislative amendment. I do not consider it appropriate or feasible to address by way of legislation situations where people missed the required deadline for returning their choices to Computershare under the Vodafone return of value scheme, whether because they didn't post their instructions in a timely manner or their instructions were not handled in a timely manner on receipt by Computershare.
