Sir, - Vincent Browne correctly points out (December 8th) some of the inequalities favouring the wealthy in the Capital Gains Tax (CGT) regime.
There is yet another inequality favouring the wealthy, i.e. the small CGT exemption limit of £1,000 here, compared to £7,200 in Britain. The reason why the British exemption limit is so generous compared to ours is, I believe, the protection of small gains for small shareholders.
The Irish Government won't lift a finger to help the small shareholder if he makes a loss on his Eircom shares, but it will tax him as soon as he makes a small profit. Wealthy shareholders, in contrast, can use their Eircom losses as a shield against CGT arising from land- or share-dealing profits.
An increase in the CGT exemption limit would help to level the playing field for the small investor, and might encourage him/ her to invest in future privatisations, since the prospect of potential losses might be cushioned somewhat by the prospect of being allowed to keep more of his potential gains. - Yours, etc., David Campbell,
Springhill Park, Killiney, Co Dublin.