You also don&#x27;t need to pay corporate tax when booking a capital gain on your shares, so the tax advantage is actually a lot more.<p>£1m in corporate income is taxed at 20%, so you&#x27;re left with £800k after tax. Then you declare a dividend, and pay a dividend tax. That&#x27;ll be 25-30%, so you&#x27;d be left with £800k - 30% = £560k in pocket.<p>To earn £3m (in pocket), you would have to generate approx. £5.25m in pretax corporate profit.<p>Whereas with a share sale, you will be taxed at 10%, meaning you&#x27;re left with £2.7m (if you sell for £3m). A significant difference.<p>I live in Belgium, where the difference is even larger. Capital gains on share sales are tax free, corporate income + dividends are taxed at about 45%.