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Share classes

Different types of share with different rights. How dividends get flexed and control gets kept.

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

What it means

Share classes — often labelled A, B, C — can carry different rights to dividends, votes and capital on a winding up.

Why it matters

They allow different dividend amounts to different shareholders, which is why alphabet shares are common in family companies, and they allow investment without giving up control.

What it looks like in practice

Creating a new class requires amending the articles and a shareholder resolution, and must be filed at Companies House.\n\nGrowth shares and preference shares are used in investment rounds for different purposes.

What to watch out for

Settlements legislation, where shares are given to a spouse or family member who does not genuinely own them. The rules are specific and HMRC challenges arrangements that lack substance.

Where to get proper advice

A corporate solicitor and a tax adviser together. This is not a template exercise.

Where to read more

Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

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