Changes to dividend tax: guidance for company directors and shareholders

Posted by 1st Formations on Jun 9, 2016 in Shares & Shareholders | 0 comments

Changes to dividend tax: guidance for company directors and shareholders

  A new dividend tax came into effect on 6th April 2016 in a bid to deter tax-minimising strategies and incentivise more people to invest their dividend income instead. The notional 10% Dividend Tax Credit, which baffled a great many people, has been replaced by a 0% tax rate on the first £5,000 of annual dividend income. It is estimated that around 1...

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Transferring and issuing company shares

Posted by 1st Formations on Dec 11, 2014 in Shares & Shareholders | 21 comments

Transferring and issuing company shares

Shares in a limited company are a form of property. As per the Companies Act 2006 and the conditions set out in a company’s articles of association and shareholders’ agreement, their ownership can be transferred or sold to other people. To do so, a stock transfer form must be completed. A company may also wish to create more shares by increasing its 'share capital'....

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A guide to company shares

Posted by 1st Formations on Dec 11, 2014 in Shares & Shareholders | 21 comments

A guide to limited company shares

Company shares are portions of ownership in a limited company. Each one represents a percentage of the company and they are owned by one or more individuals and/or corporate bodies known as 'shareholders', or 'members'. The quantity and value held by each member determines how much control and voting power they have in the business, as well as their profit entitlement and the limit of financial...

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Adding and removing company shareholders

Posted by 1st Formations on Dec 3, 2014 in Shares & Shareholders | 24 comments

Adding and removing company shareholders

Private companies limited by shares must have at least one shareholder when they are incorporated at Companies House. There is no upper limit to the number of shareholders, or 'members', you have during or after incorporation. You must, however, notify Companies House on the next annual confirmation statement (previously the annual return) when any member joins or leaves the company, or if their details change. It is also...

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What is a company shareholder?

Posted by 1st Formations on Dec 3, 2014 in Shares & Shareholders | 18 comments

What is a company shareholder?

Shareholders are the owners of companies limited by shares. They are also called 'members' and they agree to become part of a company by taking a minimum of one share in it. The quantity of shares held by each person represents how much of the business they own. In turn, this determines their decision-making power, their profit entitlement, and the extent of their personal liability for debts. (more…)

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