Eircom lapsed Right Payment

[Hanno]

I didn't take up the eircom rights issue but have received a payment. Can someone please advise as to how this payment is treated for tax purposes?
Is it a dividend payment?

 

[ClubMan]

When did you receive this payment? eircom has not been public for a long time now. Are you one of the private investors in the current eircom company? Please post more details of the shareholding, payment, amounts and dates if possible.

 

[CCOVICH]

It looks like someone has bought your rights? (Presumably this is the rights issue in connection with the puchase of Meteor)

 

[Hanno]

Yes, the latest rights issue that closed a couple of weeks ago

 

[CCOVICH]

I don't know anything about the taxation treatment of rights options. I'd imagine it's subject to CGT as it isn't earned income (unless you are a professional investor???). There are no examples in the Revenue Guide, so best be my be to call your local office and enquire.

However, I'm sure that other posters will be familiar with the issue, so if you hang on you might get better info that I can provide you with at the moment.

 

[Hanno]

Thanks CCOVICH - no not a professional investor!

I have a sharewatch account through which I bought just over 2000 Eircom shares in June.
Logged on this morning and saw that my cash balance had a few hundred euro extra in it. The site said it was a lapsed right payment.

 

[dam099]

When did you receive this payment? eircom has not been public for a long time now. Are you one of the private investors in the current eircom company? Please post more details of the shareholding, payment, amounts and dates if possible.

I think Eircom refloated some time ago, it's share price is listed on the ISE site.

 

[CCOVICH]

I guess when you decided not to take up your rights, the company sold them to someone else (possibly Babcock and Brown).

Eircom refloated quite some time ago (2004), but there were rumours recently that it was going to be bought out again! For a company that gets such bad press here and elsewhere, it certainly is popular with investors!