Your financial questions answered.
Understanding widower benefits
I was delighted to see that the Minister for Finance took the opportunity in the Budget to help people like me - a widower in my eighties. However, looking at the figures, I am confused at the new allowances. There seems to be no logic to the increases. It says that a widower under the age of 66 can expect an increase of €17 a week, those between 66 and 80 will receive €14 more and those over 80 an increase of €17.60. Can this be right?
Mr JK, Dublin
It looks odd but I have been assured by the Department of Social and Family Affairs that the figures are correct. You rightly allude in your letter to the apparent idiosyncrasy in the allowances for everyone up to the age of 80 getting increases that are rounded to the nearest euro while the over 80s do not.
The reason, apparently, is that the over 80s pension is a straight cash sum over and above the standard figure for widowers aged between 66 and 80. Before this Budget, that difference was €6.40; that has now been increased to €10.
As a result, the new weekly pension for widowers over 80 is €10 above the €193.30 that their peers between the ages of 66 and 80 will get - that is €203.30.
Unidare shares
I have a holding of Unidare shares and received a payment of €2.40 per share during the year. This was stated to have arisen from the issue and immediate redemption of fully paid-up redeemable bonus shares.
Will this payment be treated for tax purposes as a dividend or a capital gain?
Ms DC, Dublin
The relevant tax category will be capital gains but the actual bill will depend on the original purchase price of the shares you bought.
Share sales work on the basis of "first in, first out" so even though the cash was sent to you as a result of the "issue and immediate redemption" of bonus shares, the taxman considers the shares redeemed to come form the ones you originally bought.
Only when they are all sold will the newly issued "bonus" shares be considered in Revenue terms.
You will need to calculate the price received for each share sold and compare it to the original purchase price to see if you have a taxable gain ... or a loss.
Please send your queries to Dominic Coyle, Q&A, The Irish Times, D'Olier Street, Dublin 2 or e-mail to dcoyle@irish-times.ie. This column is a reader service and is not intended to replace professional advice.
