Video: Vodafone chief 'optimistic' after Verizon deal The bulk of the proceeds from the deal - 71% - will go to Vodafone shareholders, who could cash in their Verizon shares to take the entire windfall as cash. But the deal will not involve a tax payment to the UK exchequer, the company revealed, risking further controversy after intense scrutiny of its tax affairs. Vodafone will pay tax of 5 billion US dollars (£3.2 billion) in the US, but said the UK is not a "relevant jurisdiction" because its US arm is owned by a Dutch holding company. It added even if the stake was sold from the UK, it would not be taxable under UK law because of an exemption introduced in 2002. Boss Vittorio Colao said its stake in Verizon Wireless has proved "extremely valuable," but added the £20 billion of cash it retains will go to funding investment in super-fast mobile networks and broadband, as well as paying down debt. "This transaction has the beauty that it allows both to reward shareholders for their support and strengthen the company for future long-term rewards to shareholders," he said.