Dáil Éireann Debate, Tuesday - 22 September 2015
373. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter regarding an insurance company (details supplied) and tax implications for shareholders; and if he will make a statement on the matter. [31668/15]
View answerEarlier this year, the UK company Standard Life plc offered its shareholders the option of having "return of value" payments due to them treated as income or capital, with treatment as income being the default position in the absence of shareholders choosing an option within a specified time which has now elapsed. From an Irish tax perspective, the position under current legislation is that if the Standard Life return of value payment is received as income by an Irish resident taxpayer it will be taxed under Income Tax rules. If it is received as capital it will be taxed under the Capital Gains Tax rules.
I am aware of the concerns raised about those Standard Life shareholders here whose options for their payment to be treated as capital were delayed in the post resulting in them receiving an income payment and potentially having a higher tax liability. I have already committed to giving careful consideration to this issue in the course of my preparations for the forthcoming Finance Bill and this remains my position.
