Income Tax (Earnings and Pensions) Act 2003 section 75

Duty to give notice of award of shares etc.

Section 75 requires the SIP trust instrument to include provisions ensuring that trustees promptly notify employees or participants whenever shares are awarded or acquired on their behalf, and when foreign tax is deducted from dividends on plan shares.

• When free, matching or partnership shares are awarded, trustees must promptly notify the employee of the number, description, any restrictions, market value and (for free or matching shares) the applicable holding period
• For partnership shares, the notice must also state the amount of partnership share money used to acquire the shares and the market value used to determine how many shares were awarded
• When dividend shares are acquired on behalf of a participant, trustees must notify the participant of the number, description, market value on the acquisition date, holding period and any amount carried forward for reinvestment
• Where a foreign cash dividend is received on plan shares held for a participant, trustees must notify the participant of any foreign tax deducted before the dividend was paid