Taxation of Chargeable Gains Act 1992 section 149

Rights to acquire qualifying shares

Section 149 deals with the capital gains tax treatment of priority rights granted by building societies to their members to acquire qualifying shares in the society.

• The section applies where a building society grants its members, or a particular class of members, priority rights to acquire qualifying shares on or after 25 July 1991.
• Any such priority right is treated for capital gains tax purposes as an option granted for no consideration and having no value at the time it is granted.
• This means the grant of the priority right itself does not give rise to any chargeable gain or allowable cost for the member receiving it.
• The term "member" includes former members of the building society, and "qualifying share" takes its meaning from section 117(4).