INVESTORS looking forward to windfalls from building societies have been warned the taxman may want a slice.
Several building societies are due to convert to a bank or merge with members receiving shares or cash bonuses.
"Such bonuses can be chargeable to both Capital Gains Tax and Income Tax," warned Mark Schofield, managing partner at Accrington-based accountants Haworths.
"The taxman views bonuses arising on a takeover or conversion to a bank as chargeable to capital gains tax.
"And bonuses arising on the merger of two or more societies are chargeable to income tax.
"It is vital people don't over look these payments when filling in their current tax returns."
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