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HMRC internal manual

Shares and Assets Valuation Manual

Tax Advantaged Share Schemes: overseas recognised stock exchanges

You may accept quotations on overseas recognised stock exchanges.

There may be special rules in approved schemes for shares quoted on the New York Stock Exchange, which may define market value by reference to such quotations published in the Wall Street Journal. SAV does not therefore need to be involved.

The Employee Shares and Securities Unit (ESSU) are content for the market value of shares listed on an overseas recognised stock exchange to be established for approved schemes without reference to SAV:

  • On the date of grant/invitation
  • Or the immediately preceding day
  • Or an average over a maximum of 5 consecutive dealing days immediately prior to grant/invitation

If the shares are listed on an overseas recognised stock exchange, a period longer than 5 days may be agreed for approved schemes by ESSU where there is a legal requirement in a particular country.

The procedures above only apply in establishing market value at grant and/or award and do not affect procedures relating to the rollover of options or the adjustment of options following a variation of share capital.

One effect of the above practice is that for shares that are listed on the Paris Stock Exchange, ESSU will accept that the market value of approved options can be set without reference to SAV at the higher of:

  • The average share price over the 20 trading days prior to the date of grant and
  • The closing price on the day immediately preceding the date of grant

In EMI cases, quotations on overseas recognised stock exchanges may be accepted for the day before grant without reference to SAV.

  Additional Guidance:SVM150000