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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

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HM Revenue & Customs
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Enterprise Management Incentives (EMI): General requirements: Valuation of shares for individual limit

The value of the shares for the purpose of the individual limit is the Unrestricted Market Value (UMV) of the shares. This means that, if the shares are restricted, they are valued as if they were not restricted, (Paragraph 5(7)).

If the shares under option are quoted on the London Stock Exchange, the market value is based on the prices on the Stock Exchange’s Daily Official List. If shares are not quoted on the London Stock Exchange, the company may offer its own valuation. In that case, HMRC may enquire into the valuation. Alternatively, the company can ask HMRC Shares and Assets Valuation (SAV) to agree a valuation with them before the option is granted. This valuation will be in accordance with Part 8 of TCGA 1992 (see ETASSUM58010).