The short version: Shares (also called stocks) represent ownership in a company. Own shares and you own a piece of that business. You might receive dividends and your shares can go up or down in value.
How can you get shares?
Buy them through a broker or investment app. Receive them from your employer as a bonus or through a share scheme. Start your own limited company and issue shares to yourself.
How are they taxed?
Dividends above your annual allowance are taxed at dividend rates (lower than income tax rates). Profits from selling shares above your CGT allowance are subject to Capital Gains Tax. Employee share schemes have their own rules.
What about ISAs?
Shares held in a Stocks and Shares ISA are completely tax free. No dividend tax, no CGT. Using your ISA allowance is one of the most tax efficient ways to invest.
Got shares and not sure how they affect your tax? We can help you understand your position.
