Income Tax (Earnings and Pensions) Act 2003 section 69

Cash dividends where no requirement to reinvest

Section 69 requires that cash dividends on plan shares which are not required to be reinvested must be paid to the participant as soon as practicable.

• The plan must ensure that distributable cash dividends on plan shares are paid over to participants promptly.
• Distributable cash dividends are those cash dividends that are not required to be reinvested under the plan.
• The obligation applies to dividends on plan shares held on behalf of a participant by the plan trustees.
• Payment must be made as soon as practicable after the dividend is received.