Taxes Consolidation Act 1997 Schedule 11, paragraph 17

Trustees must pay over dividends etc

Paragraph 17 of Schedule 11 requires the trust instrument to oblige trustees to pay over dividends and other income on scheme shares to participants, and to act only on the participant's directions when dealing with rights issues or similar entitlements.

• Trustees must pay participants any money or money's worth (including dividends) received in respect of the participant's scheme shares
• Two exceptions apply: amounts the participant has already paid to the trustees under section 511(4)(c), and new shares received under a reconstruction or amalgamation within section 514
• Trustees may only deal with rights to be allotted additional shares, securities, or other rights if directed to do so by or on behalf of the participant
• A person in whom the beneficial interest in the participant's shares is vested may also give such directions