The short version: A shareholder is someone who owns shares in a limited company. You might be a shareholder in your own company, your employer’s company, or public companies you’ve invested in.
What rights do shareholders have?
It depends on the type of shares, but typically you can vote on major company decisions, receive dividends when declared, and get a share of assets if the company is wound up.
How are you taxed as a shareholder?
Dividends above your allowance are subject to dividend tax. Profits from selling shares are subject to Capital Gains Tax above your allowance. Shares received as part of employment can trigger Income Tax and NI depending on the scheme.
What if you’re a sole trader?
Sole traders aren’t shareholders in their business. There’s no legal separation between you and your business. Shareholders only exist in limited company structures.
Got shares and want to understand the tax implications? We can explain how your holdings affect your tax.
