Income Tax (Earnings and Pensions) Act 2003 section 68

Reinvestment: amounts to be carried forward

Section 68 deals with what happens when a cash dividend amount under a Share Incentive Plan is too small to buy a share, and how that residual amount is handled by the trustees.

• Where a dividend amount is insufficient to purchase a share, trustees may retain it and carry it forward to be added to the next dividend reinvestment
• Any retained amount must be kept separately identifiable by the trustees
• The retained amount must be paid to the participant if they leave relevant employment or if a plan termination notice is issued
• Any payment due to the participant must be made as soon as practicable