Income Tax (Earnings and Pensions) Act 2003 section 66

Acquisition of dividend shares

Section 66 sets out the rules governing how trustees must acquire dividend shares on behalf of participants in a share incentive plan.

• Trustees must treat all participants fairly and equally when acquiring dividend shares
• Dividend shares must be acquired on behalf of participants on the acquisition date
• The number of shares acquired for each participant is determined by the market value of the shares on the acquisition date
• The acquisition date must fall no later than 30 days after the trustees receive the dividend