Eircom shareholders receiving their cash from Valentia in coming weeks can use the losses on their Eircom shares to reduce tax on any capital gains made on share sales during the year. They will receive €1.365 - a cash payment of €1.335 and a dividend of three cents. The cash payment is the only amount that can be used in the CGT calculation.

Shareholders need to apportion the initial base cost of their Eircom shares between the Eircom shares they hold and the Vodafone shares they got when Eircell was sold to Vodafone. Revenue have established a 43 per cent/57 per cent base cost split. For example, shareholders who bought 1,000 shares at the €3.90 flotation price have a base cost of €1,677. Adding in their 40 bonus shares (1 for 25), which carry no cost, they can set off a base cost of €1,677 against the €1,388.40 from Valentia to give a tax loss of €288.60, which can be set off against any capital gains or carried forward indefinitely.