SCHEDULES
SCHEDULE 2Approved share incentive plans
Part 8Cash dividends and dividend shares
Limit on amount reinvested
64
1
The plan must provide that the total dividend reinvestment in respect of a participant must not exceed £1,500 in a tax year.
2
For this purpose “the total dividend reinvestment” in respect of a participant is the sum of—
a
the amount applied by the trustees in acquiring dividend shares on behalf of the participant under the plan, and
b
the amount applied in acquiring dividend shares on behalf of the participant by the trustees of other approved SIPs that are established by the company or an associated company.
3
If the amounts received by the trustees exceed the limit in sub-paragraph (1), the plan must provide for the balance to be paid over to the participant as soon as practicable.