[CG13028] Incentive payments/financial institutions: other inducements
These are incentives offered to members of building societies inducing them to vote for the demutualisation of the society, either by its conversion into a limited company or its take-over by a limited company. The incentives may take the form of:
•a right to shares in the successor company issued at nil cost (referred to as ‘free shares’) or
•a right to a cash payment from the successor company (referred to as a ‘cash bonus’).
This guidance looks at the Capital Gains Tax treatment of investors in a building society who receive either free shares or a cash bonus on a demutualisation.