Paragraph 54

United Kingdom

(1)

The plan must provide that the total dividend reinvestment in respect of any participant cannot exceed £1,500 in any tax year.

(2)

For this purpose “the total dividend reinvestment" in respect of a participant is the sum of—

(a)

the amount applied by the trustees in acquiring dividend shares on behalf of the participant under the plan, and

(b)

the amount applied by the trustees of other employee share ownership plans that are—

(i)

established by the company or an associated company, and

(ii)

approved under this Schedule,

in acquiring dividend shares on his behalf.

(3)

If the amounts received by the trustees exceed the limit in sub-paragraph (1), the plan must provide for the balance to be paid over to the participant as soon as practicable.

Notes on Schedule 8

Textual amendments

F1: Sch. 8 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)