Commentary

E1.418 Dividends received by trustees under share incentive plans

Personal and employment tax

E1.418 Dividends received by trustees under share incentive plans

E1.418 Dividends received by trustees under share incentive plans

Unless the trustees set aside the dividends they receive for reinvestment in further shares (see below) they are required to pass on the dividends to the employees. The employees are charged to tax in respect of such dividends under ITTOIA 2005, s 382 (see E1.412) or (if paid by a non-UK resident company) under ITTOIA 2005, s 402 (see E1.416).

In some SIPs, the trustees must reinvest the dividend in acquiring further shares; in other SIPs, the trustees may reinvest the dividends if the employee so elects. In either case there is

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