Income Tax (Earnings and Pensions) Act 2003 section 74

Duty to make payments to participants

Section 74 requires the SIP trust deed to oblige trustees to pay over to participants any money or money's worth received in respect of their plan shares, subject to certain exceptions.

• The trust instrument must require trustees to pay over to participants, as soon as practicable, any money received in respect of or by reference to the participant's shares.
• Any money's worth received must also be paid over, unless it consists of new shares arising from a company reconstruction under paragraph 87.
• The duty to pay over is subject to the rules on cash dividends and dividend shares (paragraphs 62 to 69), and to the trustees' obligations under sections 510 to 514 regarding PAYE when shares cease to be subject to the plan or capital receipts arise.
• The trustees' general PAYE obligations also take priority, meaning that any necessary tax deductions must be made before amounts are passed to participants.