Is there any tax implication to a limited company when issuing new shares at a premium ? For instance, issuing 100 shares at nominal £1 each, but the company receives £1,000. I've been googling, but all the online answers talk about capital gains or other taxes to an existing shareholder who sells on shares at a premium, or the tax when existing share premium capital is used or paid out. I had thought my query was quite straightforward, but ... For background info, this is a brand new company, the intention is to raise capital for operating use, this particular capital (or at least the premium) will never be traded or regarded as having any value to the share purchasers. Look on it as a gift to the company. Permanent. From fully aware individuals, nothing untoward here. The existing or "main" shareholders are not concerned about any dilution of ownership. I am assuming this will be done by way of a separate class of share - no voting rights, no other rights. It's purely a way of getting funds into the company mainly from non-existing shareholders, with no expectations of those funds ever being repaid or traded. And importantly without creating any tax implications for the company.