Is there a tax liability position for just holding shares in a ltd company? (No profits/no dividends)

Is there a tax liability position for just holding shares in a ltd company that makes a profit? (No dividends)

I know that if you get dividends from shares then you have a potential tax liability.

 

share tax- tax on capital gains made on disposal and tax on income from divs.

 

Thanks Tiggs

Further question

If you are given shares in a company, is there a potential tax liability?

As an employee share ownership scheme?

Or other?

Is there a level? (Like I don't recall being taxed on my allocation of Halifax shares )

Thanks

 

Puff

You might be better asking for share options that can be gained either on a certain date or exercised in case of sale of the company.

*I think* there is another liability as a shareholder which is the one of the debts of the company..

One for Mrs PTMW! me thinks..



will ring you tomorrow..

 

Willie

Look forward to it m8

But wifey knows jack about that sort of stuff - run me over & you've signed away your income for the next 180 years

 

LOL only 180 years bargain...!!

 

Yes, but only when you sell them - its a capital gain.

No tax payable on sale if its a qualifying scheme under Inland Revenue rules. Qualifying schemes will have restrictions on when you can sell them if tax is to be avoided

Only qualifying schemes are exempt from tax as long as restrictions are followed

No tax basically because you were given shares in return for that part of the Halifax you "owned" as an investing member, as opposed to being gifted the shares for free.

Dividends are treated as income for tax purposes and should be declared on your tax return (For those that get one).

HTH

D

 

Willie,

Liability on debts of the company only extends to the nominal value of the shares.

In Puff's case there would be no additional liability.

D