Example CGT Computation of shareholder who opted for the Capital Option and Sale of the Verizon Shares: An Individual with 1000 Vodafone Shares received the following:

Cash (1000 x €0.3585437)					€358.54
26 Verizon Shares (Price per share €34.0835897)			€886

545 New Vodafone Ordinary Shares: Cash in respect of fractional entitlements in Vodafone Ordinary Shares and Verizon shares (assumed Nil in this example).. Computation Amount of Consideration (Return of Value) on 1000 Vodafone Ordinary Shares Cash € 358 Verizon Share Value € 886 Total Consideration €1,244 Less Part of Base Cost applicable to this part-disposal Base Cost 1,965 Net Loss (721) Income Tax Treatment Those who choose the Option C scheme or didn’t specify will have received a dividend consisting of cash and Verizon Communications shares.  This dividend will be taxable in the same way as all previous Vodafone dividends. The amount of the dividend that each individual should declare for income tax purposes is the sum of the cash actually received (€358 based on example 1 above) and the market value of the Verizon Consideration Share Entitlement received (€886 as per the same example1). Individuals aged 65 years of age or over can claim exemption from income tax in 2014 if their total income for the year, including pensions and other income (such as Vodafone /Verizon Dividends), is less than:

• €18,000, if single, widowed or a surviving civil partner, or
• €36,000, if married or in a civil partnership.

Individuals taxed through the PAYE System Individuals who pay tax through the PAYE system and have net assessable non-PAYE income of less than €3,174, can have the tax due on the non-PAYE income collected by offset against their tax credits either by: Where Using PAYE Anytime – Entering in the “UK Dividends” box, the amount of the payment received (€1,244 in example 1 above). [If not registered for PAYE Anytime, a PAYE taxpayer can do so by logging on to www.revenue.ie and selecting ‘Register for PAYE Anytime’] or by  contacting their Revenue office – and providing details of the dividends. Revenue will then reduce the PAYE tax credits by the amount of the dividend income and will issue a new Tax Credit Certificate. Revenue will also send a new notice to employers showing the reduced tax credits to be applied in payroll. In this way the tax due on the Vodafone income will be collected from salary/wages through the PAYE system. Individuals taxed through the Self-Assessing System Individuals who are “chargeable persons” subject to Self-Assessment are required to include all their assessable income on their annual tax returns. Individuals who in addition to paying tax through the PAYE system, have net assessable non-PAYE income of €3,174 or more in any year of assessment are chargeable persons and must complete a Form 11. The amount of the Vodafone income (€1,244 in example 1) should be included in the Form 11. The dividends are liable to Income tax and USC, and may also be liable to PRSI depending on taxpayers’ personal circumstances. If you have any further questions relating to this or any other matter please contact us today or call 01-6424208