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CGT for over 65's

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  • 16-08-2020 1:31pm
    #1
    Thelonious
    Registered Users Posts: 109 ✭✭


    I'm looking for a few words of advice relating to investing.



    My dad has just reached retirement age (65). He wants to invest some money in US companies. We want to know if there is a way to structure the investments so that the gains would be exempt from Capital Gains Tax.



    Would it be possible to set up a pension account that allows for active management and if so would that be exempt from tax on profits?



    I'd be grateful for any one to chime in.


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    #2
    Shedite27
    Registered Users Posts: 9,364 ✭✭✭Shedite27


    Thelonious wrote: »
    I'm looking for a few words of advice relating to investing.

    My dad has just reached retirement age (65). He wants to invest some money in US companies. We want to know if there is a way to structure the investments so that the gains would be exempt from Capital Gains Tax.

    Would it be possible to set up a pension account that allows for active management and if so would that be exempt from tax on profits?

    I'd be grateful for any one to chime in.
    CGT applies to all ages equally. If he's looking for a cheaper return, dividend stocks pay out their profits from Growth as Dividends, so he could get a return each year. This would be taxed as Income tax which if he's on a lower pension could be at the lower income tax rate (or possibly exempt if he has no further income).

    If he's planning on investing for an inheritance, he could look at something like Aviva's SDIO product through an ARF. This allows you to pick the shares you want to buy, and if you sell it, the proceeds get added to your fund without CGT. He won't be able to use these funds in his lifetime, but might be an alternative depending on what he's using it for


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    #3
    Thelonious
    Registered Users Posts: 109 ✭✭Thelonious


    Shedite27 wrote: »
    CGT applies to all ages equally. If he's looking for a cheaper return, dividend stocks pay out their profits from Growth as Dividends, so he could get a return each year. This would be taxed as Income tax which if he's on a lower pension could be at the lower income tax rate (or possibly exempt if he has no further income).

    If he's planning on investing for an inheritance, he could look at something like Aviva's SDIO product through an ARF. This allows you to pick the shares you want to buy, and if you sell it, the proceeds get added to your fund without CGT. He won't be able to use these funds in his lifetime, but might be an alternative depending on what he's using it for


    Roger that. Thanks for the information bud


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