Share capital is the nominal value of the shares the company has issued to its shareholders. The balance sheet shows one figure, "Called up share capital"; this note explains it in terms of the number and type of shares.
What this note shows
The number and aggregate nominal value of each class of allotted shares, for example "100 Ordinary shares of £1.00 each", with the £ amount for this year and last year. The Small Companies and Groups (Accounts and Directors' Report) Regulations 2008 (SI 2008/409) Schedule 1 requires this for small companies. The editor's guidance line refers to this as "Sch 1 para 47".
The note is part of FRS 102 Section 1A accounts. FRS 105 micro-entity accounts show called up share capital on the balance sheet without a note.
Where the figures come from
| Field | Source |
|---|---|
| Share class | Typed in (defaults to "Ordinary") |
| Nominal value per share (£) | Typed in, one value for both years |
| Number of shares allotted, called up and fully paid | Typed in, for this year and last year |
| Called up share capital (from the trial balance) | The total of trial balance accounts in the Called up share capital group; read-only |
If the number of shares multiplied by the nominal value does not equal the trial balance figure, the editor shows a warning: "Number of shares × nominal value (£…) does not equal called up share capital in the trial balance." Either the share details or the trial balance needs correcting. Your confirmation statement at Companies House is a good place to check the number of shares.
Completing the note in Tax Optimiser
Open the period, choose View Accounts, then Notes in the left Actions menu. Under Share capital, select Share Capital.
- Set Show this note in the accounts to Yes.
- Enter the Share class, for example Ordinary.
- Enter the Nominal value per share (£), for example 1 or 0.01.
- Enter the Number of shares allotted, called up and fully paid for Current Year and Last Year.
- Check that no mismatch warning appears.
- Optionally type in Additional information, such as the rights attaching to the shares.
- Click Save changes to save the note and rebuild the accounts preview.
The editor holds one share class. If the company has more than one class (for example A and B ordinary shares), enter the main class in the table and describe the others in Additional information or in Additional note for Share Capital, making sure the £ amounts add up to the trial balance figure.
Wording templates
On the Additional note for Share Capital section:
- Single class of ordinary shares – confirms the shares are all of one class, fully paid, with full voting, dividend and capital rights. You are asked for {{NumberOfShares}} and {{NominalValue}}.
- Shares allotted in the year – describes new shares issued at a premium and the closing share capital. You are asked for {{NumberOfShares}}, {{NominalValue}}, {{Premium}} and {{TotalShareCapital}}.
How it appears in the accounts
The note prints "Allotted, called up and fully paid", then a line such as "100 Ordinary shares of £1.00 each" with the £ amount in each year's column. If the number of shares was different last year, the prior-year number is shown in brackets. Additional information and additional note text print below.
Frequently asked questions
What is called up share capital?
It is the nominal value of shares the company has issued and asked shareholders to pay for. For most small companies all shares are fully paid, so it is simply the number of shares multiplied by their nominal value.
Why do I get a "does not equal called up share capital" warning?
The number of shares multiplied by the nominal value you entered does not match the called up share capital in the trial balance. Check both against the company's confirmation statement and correct whichever is wrong.
How do I show more than one class of share?
The table holds one class. Enter the main class there and describe other classes in the Additional information box or the additional note, making sure the totals agree to the trial balance.
Where does share premium go?
Share premium is a separate reserve on the balance sheet, not part of called up share capital. The "Shares allotted in the year" template can mention the premium paid on new shares.
Does a company limited by guarantee need a share capital note?
No. It has no share capital. Use the company limited by guarantee note to describe the members' guarantee instead.