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TaxRobin
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If a person gets profit share on a monthly basis - what type

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Hi
JA: Hello. How can I help?
Customer: If a person gets profit share on a monthly basis - what type of tax applies to that? because its not equity share so I dont think its capital gains tax
JA: What are the assets or property for this capital gain?
Customer: the business is via selling mobile phones but it would be prfoit share from another company that does all the selliing
JA: Anything else you want the Accountant to know before I connect you?
Customer: no

Hello and thank you for allowing me to assist you.

Dividends are payments made to company shareholders from the profits of a company

The tax-free dividend allowance is £2,000. Basic-rate taxpayers pay 7.5% on dividends. Higher-rate taxpayers pay 32.5% on dividends.

Customer: replied 6 days ago.
The dividends received are from profits but the investors are not shareholders in equity but rather just receiving profit share. Would the same tax apply?

Yes

Customer: replied 6 days ago.
Thanks

You are most welcome.
A 5 star positive rating would be appreciated

Customer: replied 6 days ago.
Ok

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