Get a Unique Tax Reference for free with Earnr. Click to get started!

Shareholder

Term

A person who owns shares of a limited company. If you own the company, you are the sole shareholder.

You’re a shareholder if you own your own private limited company and you’re a company director, you’ve got shares of your employer’s company or you’ve bought shares in public limited companies.

A sole trader isn’t a shareholder, but those in a limited company, hold shares.

If you sell shares for a profit, you’ll have to pay CGT, as long as it’s above the allowance of £12,300/year.

Profits from shares in an ISA are tax-free.

If you make a loss selling shares, you can carry it forward for next year and claim it - reducing CGT for the following year.

Any dividends collected are subject to dividend tax as long as they exceed the allowance of £2,000.

Back to Taxionary

You might also like...

decorative image for a blog
January 4, 2021
Earnr

Welcome to earnr 👋

Our first post on our blog! We can't wait to show you what's next

Read more
decorative image for a blog
August 9, 2022
Self employed

How Earnr creates a steady income for Etsy sellers

Here’s how Earnr helps Etsy sellers organise their income and pay themselves a regular salary

Read more
decorative image for a blog
August 9, 2022
Self employed

How Etsy sellers are adapting to a post lockdown economy

As part of our interest in supporting Etsy sellers, we’ve been doing some digging into the current state of the Etsy world as lockdown becomes more and more a thing of the past.

Read more
Download earnr