Guidance on share scheme valuations updated

HMRC has updated its guidance for those operating enterprise management incentives (EMIs) or a share incentive plan (SIP) regarding the length of time the valuations from HMRC’s shares and assets valuation service (SAV) are valid

In the case of EMIs, valuations are now ruled to be valid for 90 days from the date of the agreement.

There is no change to the advice on SIPs, which states that it may be possible to agree with SAV that the agreed valuation stands for a defined period of six months.

This defined period can be ended at any time before the end of six months by contacting SAV.

The defined period would also end early if a significant event happens which is likely to impact the share value.  it is possible to apply for an extension to the defined period by writing to SAV and confirming no significant events have happened since the original valuation or are likely to happen in the period covered by the extension.

When SAV has all the information it needs, it aims to reach an agreed valuation within four weeks of receiving a request form. If it has to ask for further information, this can take longer. SAV will also try and arrange one meeting with individuals or their professional advisers to discuss the valuation, if requested.

HMRC Guidance Share valuations: EMI and SIP share schemes

Report by Pat Sweet

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