Can shareholders receive different amounts of dividends?

They can where their holdings and share rights support it. Dividends are not simply allocated according to who needs the money. Check the company’s articles, share classes and available profits before approving different payments, particularly where family members are shareholders.

These answers provide general information, not advice tailored to your circumstances. Rules can change and exceptions may apply — speak to the CASS team before making a tax, accounting or financial decision.

Start with the share rights

Shareholders holding different numbers of shares can receive different totals. Shares in the same class normally carry the same dividend rights per share, subject to the company’s terms.

Different classes need proper terms

Separate share classes may carry different rights. Giving them different letters does not, by itself, establish what dividends can be paid. The articles and supporting documents matter.

Check the tax consequences

Changes to rights, transfers or dividend waivers can raise tax questions. Do not use informal arrangements to redirect income without reviewing the legal and tax position first.

Agree before paying

CASS can review the accounting and tax questions. Changes to share rights or company documents may require specialist tax and legal advice before implementation.