HMRC has updated its guidance for agreeing the value of shares when operating Enterprise Management Incentives (EMIs) or Share Incentive Plans (SIP).
If you operate an EMI or a SIP there are a number of occasions when you need to agree the value of your shares with HMRC Shares and Assets Valuation (SAV).
The section ‘how long valuations are valid for’ has been altered to provide more clarity on the length of any extension period.
Valuations for EMIs are valid for 60 days from the date of the agreement. You may be able to extend this agreement period for a further 30 days by writing to SAV.
With regard to SIP schemes, you may be able to agree with SAV that the valuation stands for a defined period of six months. You can end this defined period at any time before the end of six months by contacting SAV. When the defined period ends, you may apply to extend it by writing to SAV.
The defined period would also end early if a significant event happens which is likely to impact the share value.
