Vodafone / Verizon Sale

niallshox

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As far as I've seen the Revenue have informed shareholders of Vodafone Shares (Eircom originally) will not be subject to CGT due to the accumulated losses since the IPO. This is dependent as your payment being processed as 'capital' and not 'income'.

However if your paperwork wasn't received on time by Computershare, the default is that your payment is deemed income and will be subject to up to 55% tax, USC, etc.
 

ClubMan

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OK - thanks. That was my mistake. I assumed that if I elected to get the return of value/share consolidation payment to my bank then the same applied to the proceeds of the Verizon CDI sale. But I read the guide that I linked to earlier again and it does seem to say that the latter payment would be by cheque. So I'll just sit tight and wait for it... :D
Cheque for Verizon proceeds came in the post today.
 

Aloysius

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So what's the bottom line? Is it still approx €1.25 per Vodafone share! split between 2 or 3 cheques?
 

ClubMan

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Furthermore, nothing on the paperwork from Computershare re either the Vodafone portion or the Verizon portion makes any reference to whether the payment is 'income' or 'capital'.
This is incorrect. The guide issued to shareholders deals with this issue.

http://www.vodafone.com/content/dam/group/investors/downloads/vzw/vodafone_shareholderguide_101213_web.pdf

E.g....

If you are tax resident in the UK or Ireland (or certain other jurisdictions) you will have a choice as to
the tax treatment (capital*gain or income tax) in relation to the Return of Value. If you do not make
a choice you will receive income tax treatment on your Return of Value. Please refer to Question 6
in Section 4 of*this guide and to Part X of the Circular for further details.
 

ClubMan

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chillaxed

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So if I had spent £1000 IEP on eircom shares the first day how much would I have gotten back over the years between the various payouts, dividends and the present value of the shares.

In other words am I looking at a loss overall and what kind of %?
 

monagt

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Was there a maximum amount that you could buy at the start?
Does anyone have a table of amounts due?
Say 500 initially with divs reinvested and Verzon sold would yield ???
Say 500 initially with divs NOT reinvested and Verzon sold would yield ???
Say 500 initially with divs reinvested and Verzon NOT sold would yield ???
etc.
 

niallshox

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Thanks Clubman. I should have clarified that nothing on the paperwork received with the Verizon cheque states whether it is 'income' or 'capital' apart from a cursory mention of HM Revenue and CGT.
 

Janet

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Thanks Clubman. I should have clarified that nothing on the paperwork received with the Verizon cheque states whether it is 'income' or 'capital' apart from a cursory mention of HM Revenue and CGT.
I think (but am open to correction) that it was only the Vodafone return to value portion that had an option to receive it as capital or income. The Verizon sale, if you chose to immediately dispose of your new shares in Verizon, is a bog standard sale of shares, which is always a capital disposal. Maybe someone who's more experienced than I am with buying and selling shares can confirm that.
 

1dave123

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130
Hi Janet - that is my understanding too.

The Vodafone letter dealing solely with the return of value element does state that my €125 is a Capital Payment.

Cheers
 

monagt

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880
new shares in Verizon, is a bog standard sale of shares, which is always a capital disposal. Maybe someone who's more experienced than I am with buying and selling shares can confirm that.
OK - but the Verizon shares are part of the Vodafone holding...they were not free.............so what is their acquisitor value if you has to treat them as bog standard??

I think all is return of value
 
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PMU

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margaret1

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My preference forms were not opened in Bristol before the 1pm deadline on the 20th so the online share default will be in place for the remaining vodafone shares. Would anyone know when we expect to be issued with them and the computershare ID and also if it is straight forward to register online and sell the remaining vodafone shares. Thanks
 

freddiek

Registered User
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1
guys, need a little help please. know nothing of the recent deal, just doing this on behalf of a parent who is a bit confused:


my mother had shares worth about 95 euro in Vodafone until recently.

She opted for the Capital payment on the "Return of Value form".

she has received 2 different payments in the last week or so.

one was for €12.19 - 'capital payment'. the second was for €30.32 - 'fraction payment'

additionally, it looks like she has also been granted 18 new shares. worth about 50 euro currently.


She had presumed that by completing the "Return of Value form" she would receive the full value or close to that of the 95 euro that her old shares were worth at the time.

So she's surprised that she has got less than half of that so far as well as the fact she never intended or wanted to receive these 'new shares.
 

Janet

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648
She should also receive a cheque from Verizon if she chose to sell the Verizon shares arising as a result of the sale. If she hasn't already done so, she still has until 4 April to send in that form. That was the second page of the form she would have filled out to get the capital payment. I'd really recommend reading through all of this thread - including the links to the various articles in the Irish Times, which explain quite well exactly what happened. As a very small shareholder, she wouldn't have had any choice with regard to "the fact she never intended or wanted to receive these 'new shares" - there was a shareholder vote to decide whether to go ahead with it or not but her tiny shareholding wouldn't really have had a deciding vote.
 

Shaz

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206
Hi,
Would the net cheque amount from Vodafone been different if capital payment instead of income payment was chosen? When would it have been better to choose income payment? I did not inherit vodafone shares from eircom. Just bought them directly myself from a stockbroker in Feb 2013.. I have no other capital gains/loss and pay income tax at 41%. Thanks.
 

frankmac

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192
Ok this is a bit longwinded and I hope it can be understood.

A week before the due date I returned the completed forms opting for "capital" and to sell Verizon shares. I then received a letter saying it was received late and that the proceeds would be treated as income.

I then received a further letter with a "dealing form" to sell the Verizon shares commission free on or before 4th April 2014, however before I got the chance to return this form I received a cheque for the proceeds of the sale of my Verizon shares.

Should I now assume that they did receive my forms on time and treat the monies received as capital.
 

Janet

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648
Should I now assume that they did receive my forms on time and treat the monies received as capital.
What does it say on the document from Vodafone outlining the numbers? Mine clearly states that it was a capital payment.
 

Hen

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Messages
38
I still have not received any money into my bank account or anything in the post about the sale but when I log online I can see the new shares I hold so the transaction for me seems to have happened. I did not opt to sell my Verizon shares but I have received a letter telling me that I can sell them so I am receiving post. Is it possible to see online what has happened or have I to wait for the post and the lodgement to my bank account?
 
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