Income Tax (Earnings and Pensions) Act 2003 section 80

Other duties of trustees in relation to tax liabilities

Section 80 sets out additional obligations that the trust instrument must place on Share Incentive Plan trustees regarding record-keeping, PAYE compliance, informing participants of tax liabilities, and providing information about dividend payments.

• The trust instrument must require trustees to maintain records sufficient to meet their own PAYE obligations and those of the employer company in relation to the plan, including obligations arising when shares leave the plan or when capital receipts occur.
• Where an event triggers an income tax liability for a participant — whether under ITEPA 2003 or under the dividend income provisions of ITTOIA 2005 — the trustees must inform the participant of any facts relevant to determining that liability.
• The nominee reporting rules in sections 1105 to 1108 of the Corporation Tax Act 2010 apply to cash dividend balances paid to participants, amounts originally retained for dividend reinvestment but later paid out, and relevant dividends where dividend shares leave the plan within three years of acquisition.
• A cash dividend used to acquire dividend shares is treated as a "relevant dividend" if those dividend shares cease to be subject to the plan before the end of the three-year period beginning on the date they were acquired on the participant's behalf.