M&T sale could save AIB €108m in tax

AIB Bank will save an estimated €108 in Capital Gains Tax (CGT) if it sells its stake in US bank M&T.

The tax saving on the potential profits of €540 million on the sale of its 23.35% stake in M&T comes about because of tax changes in effect this year.

The generous tax breaks were introduced in the Finance Act 2004 by former Finance Minister Charlie McCreevy and amended by Minister Cowen in this year’s Act. They provide an exemption from Capital Gains Tax (CGT) on the profits from the disposal by an Irish company of a shareholding in another company.