PHARMACEUTICAL SOCIETY:THE GOVERNMENT is changing the legislation that set up the new Pharmaceutical Society of Ireland to ensure that its sale of two valuable buildings in Dublin 4 will be subject to capital gains tax (CGT).

The society, which is the official regulator of the pharmacy sector, hopes to fund its acquisition of new office space by selling an Edwardian house at 18 Shrewsbury Road and another house at 37 Northumberland Road, both of which are used for offices.

The Shrewsbury Road property was valued at the outset of the sale process in June at some €25 million, but the extent to which its value has dropped since is unclear. The sale process is ongoing.

Established as a statutory body under the Pharmacy Act 2007, the new society assumed functions formerly carried out by a predecessor body of the same name. The Act is being introduced on a phased basis by Minister for Health and Children Mary Harney.

The old society has owned the Shrewsbury Road building since the 1950s. The redbrick house has almost 929sq m (10,000sq ft) of living space on 0.8 acres of grounds, and includes two high-spec apartments in an original annex. There is also a three-bedroom cottage on the grounds.

In the Finance Bill yesterday, Minister for Finance Brian Lenihan said changes were being made to "correct provisions" in the Pharmacy Act which led to a potential loss of CGT proceeds from the sale of property owned by the society. The Bill says "any assets acquired by the new Pharmaceutical Society of Ireland from the old society under the Pharmacy Act 2007 will be charged to capital gains tax on a disposal of such assets by the new society as if they had been owned by that body from the date they were acquired by the old society".

There was no comment last evening from the society's spokeswoman on the measure.