CGT And The Elderly
Sir, - Jill Kirby's article (December 12th) is misleading about the effects of recent changes in Capital Gains Tax (CGT) on the income of elderly people She writes: "An elderly person with Irish Permanent free shares could have paid £400 in CGT on every £1,000 worth of shares. Now the bill will be £200 ..."
In fact, a married elderly person who prudently sold off some of her Irish Permanent shares last year, to make a gain of £2,000, will be £300 worse off next year thanks to the Budget, if she realises the same profit on more of her shares. (The tax-free exemption is no longer automatically doubled for married couples). Likewise, a widowed elderly person who sold Irish Permanent shares at a profit of £1,000, will be £100 worse off if she makes a similar sale next year.
The CGT exemption limits should be restored, to protect small gains for elderly small shareholders who are trying to turn their capital into income. - Yours, etc., David Campbell,