Vodafone corporate action in 2006

[dad]

Hi,

Vodafone paid 0.15p per share redeemed (think these were called B shares). If you held 800, you should now hold 700 after their 7 for 8 consolidation. You should also have received a cheque for 100*0.15= 15.00

Is that correct and what happened ? Am I missing anything else ?

I assume that this is treated under CGT and not IT. What is the treatment ? Trying to get all bits and pieces for the 06 tax return.

Thks,

 

[taxnovice]

You are right about the 7 for previous 8, but not about the payment. You should have got 15p for each share previously held-- 800x15p in your example. Whether the payment is treated as a capital gain or income depends on which of the 3 available payment methods you opted for. If you did not do anything, you automatically went for the capital option and should treat the payment as a capital gain.

I am still at a loss as to how to calculate the capital gain/loss, as my Vodafone shares came throught the infamous Eircom route. Can anybody enlighten me? None of the circulars and documentation I have read are clear on this point.