Vodafone return of value C share scheme

Vodafone return of value C share scheme

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The C share scheme for return of value earlier in the year comprised a cash dividend payment and an allocation of Verizon shares.  Should the Verizon share element be included in the tax return as a stock dividend?   I would have thought yes - although HMRc guidance says:

If you took up an offer of shares instead of receiving a cash dividend, this is a stock dividend. The company should have provided a dividend statement showing 'the appropriate amount in cash' or 'the cash equivalent of the share capital', enter this figure in box 12. Do not include the amount of Income Tax treated as paid.

There was no cash alternative (apart from immediately selling the shares once issued).

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By TaxAngel
02nd Nov 2014 17:20

See tax circulars issued at the time

The document issued by Vodafone at the time says the C option was income.  the B shares were the capital option.  See

http://www.vodafone.com/content/dam/group/investors/downloads/vzw/vzw-tr...  and also:

 http://www.vodafone.com/content/index/investors/verizon-wireless-transac... (see Tax Questions for UK and Irish Shareholders).

BTW, in case you were not aware of it (other readers may not be) most large quoted companies have a useful section on their websites called 'Investor (or shareholder) information' which usually answers questions such as these.  Although one is encouraged to take own professional advice, the guidance is prepared and reviewed by tax specialists (usually top firms) so I do tend to rely on them.

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