Share and Assets Valuations for employee shareholder status

Find out how to get shares valued by the HMRC Shares and Assets Valuation (SAV) team if you want to offer employees shares in exchange for certain employee rights.

To give you and your employee assurance on the value of shares under an employee shareholder agreement, you can ask the Shares and Assets Valuations (SAV) team to agree the open market value.

To grant someone employee shareholder status in your company, you need to award them at least £2,000 worth of shares.

Agree an employee shareholder valuation

Fill in a VAL232 form to get an employee shareholder valuation.

SAV may need to ask further questions based on your answers. It will only ask for information it considers relevant.

If you have any additional information that is not asked for on the VAL232 form and may help with its valuation, you can provide this with your form on a separate sheet. This might include:

  • any special features of the business
  • relevant financial affairs of the company, directors or shareholders

Once you’ve completed the form, you’ll be able to print a copy and post it to SAV.

How long employee shareholder valuations are valid for

Employee shareholder agreed valuations are valid for 60 days. You can award the shares for Employee Shareholder Status during this period.

If you have already awarded the shares, the valuation will apply for the date of the award only.

After 60 days, you may apply to extend the valuation period by writing to SAV, provided there have not been any significant events since the original valuation.

Significant events include (but are not limited to):

  • any change (completed or actively contemplated) in the share or loan capital of the company
  • any arm’s length transaction (completed or actively contemplated) involving shares of the company
  • negotiations or preparations for a flotation or takeover
  • any declaration of a dividend on any class of shares in the company
  • the publication by the company of any new financial information, for example, the annual accounts or interim results or announcement

If there have been any significant events you should start the process again.

What to expect from SAV

If you appoint an accountant or professional valuation firm we will deal directly with them. Make sure your professional adviser has all the facts, as you’ll be responsible for the accuracy of the information given to SAV.

When we have all the information we need we will try to reach an agreed valuation within 4 weeks of getting your request. If we have to ask you for more information it can take longer.

You can expect us to explain any actions we take. This includes why we:

  • would like to meet with you
  • need to question any explanation you have given
  • propose a valuation different to yours

If you or your professional adviser:

  • wants to meet to discuss the valuation we will try to arrange a meeting - this may mean the process will take longer than usual
  • write to us with a question or issue we will try to respond within 10 working days – if we cannot we’ll let you know the reason for the delay and when you can expect a full response

How SAV shares your information

Your company and its directors and shareholders have the right to the same level of confidentiality as all taxpayers.

We will only give information to people you have authorised, except in the limited circumstances allowed by law (such as at a tax tribunal).

How to disagree with a valuation

If you think we have made a mistake or treated you unfairly, you can ask for the matter to be reviewed by the Assistant Director in charge of the part of SAV where the valuation was carried out.

Find out how to complain about HMRC if you’re still not happy with the outcome.

Published 4 March 2014