Revenue have offered an approach to the tax treatment of shares transferred to the Minister for Finance under the provisions of the Anglo Irish Bank Corporation Act 2009.
Following correspondence with Revenue on this matter, the general approach will be that where shares are transferred to the Minister for Finance, there will be a disposal to which Section 538 TCA 1997 applies.
Where a claim is made, the shares will be treated as of negligible value and a loss for 2009 may be calculated. If it later transpires that compensation is received in respect of the transferred shares, this will be treated under TCA97 s535 as consideration for a disposal at time of receipt. In such a case, if a negligible value claim was made earlier, there will be no base cost. If a negligible value claim was not made, the costs of acquisition of the shares transferred will be the base cost to be set against any compensation proceeds.