Alphabet Shares Uncovered - Tax, Compliance & Risk Strategies

Introduction

The use of multiple classes of shares (commonly referred to as alphabet shares) is common in the Owner Managed Business (OMB) sector, particularly where dividends are desired to be payable at different rates between shareholders.

From 2025/26, directors of close companies must disclose the amount of dividends and maximum percentage ownership during the tax year. Additional HMRC scrutiny is therefore likely and ensuring a remuneration strategy, including dividends, stands up to scrutiny has never been more important.

This webinar will examine the tax implications of implementing alphabet shares and the risks clients must be aware of, if done for the wrong reasons.

What You Will Learn

This webinar will cover the following:

• Share reorganisations - Understanding share reorganisations and how to implement alphabet shares without triggering a Capital Gains Tax (CGT) charge
• Employment-related securities implications - How different classes of shares interact with employment-related security rules
• Dividends vs. earnings - Evaluating common scenarios to determine whether payments should be treated as dividends or salary
• Value shifting provisions - Identifying and mitigating HMRC risks around transferring value between shareholders
• Companies Act considerations - Key legal issues to be aware of when creating or reorganising share classes
• HMRC reporting requirements - Understanding the new disclosure obligations for close company directors

This pre-recorded webinar will be available to view from Thursday 16th July 2026

Alternatively, you can gain access to this webinar and 2,300+ others via the MBL Webinar Subscription. Please email webinarsubscription@mblseminars.com for more details.