Miscommunication and mountains of paperwork meant that some shareholders didn’t opt for the choice to receive payment as capital, and therefore avoid paying tax on the sum. The default option is ‘income’, which takes up to 55% of the amount in tax. Other shareholders stressed that they had chosen the capital option, but still received the default option.
However, the Finance Bill 2015 has included a provision solely for Vodafone shareholders in this scenario. For sums under €1,000, payments will be treated under the capital bracket, unless the individual specifically chooses the income alternative.