Earnr AI, your new tax assistant, is here. Check it out now!
Stressed by tax?
Get Earnr Pro
Taxionary

Shareholder

[ˈʃeəˌhəʊldə]

Term

Summary:

A Shareholder is a person or entity that owns a proportion of a limited company. They may receive a share of the profits and this share is called dividends.

More detail:

A Shareholder is a person or entity that owns a proportion of a Limited Company's stock. A Shareholder is entitled to a portion of the company's profits, known as dividends. They have the right to vote on important company decisions, such as electing board members.

There are two main types of Shareholders. Ordinary Shareholders are entitled to vote and receive dividends, but preference Shareholders have priority over ordinary shareholders when it comes to receiving dividends and getting their money back if the company is liquidated.

Most majority Shareholders are company founders. These majority Shareholders often have majority voting power so have large control over the running of the company.

Sole Traders and partners in a Partnership do not count as Shareholders.

If more than the Dividend Allowance is earned from receiving dividends, dividend tax will need to be paid on this amount above the allowance. Capital Gains tax will be owed if shares are sold for a profit and the profit is above the Capital Gains Tax Allowance.

Back to Taxionary

You might also like...

decorative image for a blog

Submit your 22/23 Tax Return Before January 31st

January 31st is the deadline for submitting 2022/23 tax returns. It's a good idea to complete your tax return ahead of this deadline to avoid mistakes and potential penalties. This article shows why its a good idea to submit your tax return early and how Earnr can help you if you are stuck.

Read more
decorative image for a blog

We asked Earnr AI why you should use Earnr…. here’s what it said…

We recently introduced our newest addition to the Earnr team; our AI chat bot, Earnr AI. In this article we put Earnr AI to the test and asked it why you should use Earnr as your tax companion, bookkeeping tool and tax return assistant. Read it's excellent response!

Read more
decorative image for a blog
December 20, 2023
Tax essentials

Why should you submit your tax return over the Christmas period?

The festive period is often thought of as the busiest time of the year with the run up to Christmas and New Year. Whilst this period can feel hectic at times, it can also be seen as the perfect time to complete your tax return. In this article we explain why this Christmas time is the best time to submit your 22/23 tax return.

Read more
Earnr logoDownload earnr