Vodafone sale of Verizon could be free of tax
The billions anticipated to be relievable for the sale of the minority stake may well not be subject to tax in the UK. This is primarily because Verizon is held by a holding company resident in The Netherlands. However, even if the proceeds were received by a UK resident company the exemption from tax on capital gains arising on sales of "substantial shareholdings" held by UK trading companies would have likely applied.
It will be interesting to see how all this goes down with the Public Accounts especially after the allegations last year suggesting that Vodaphone had legitimately avoided paying as much as £1bn in taxes over a 16-year period by accruing tax credits.
Date: 3rd September, 2013
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