EMI Valuations: back to 90 days

23 August 2022

One of EMI benefits is an opportunity to receive an agreed-upon valuation of its shares from HMRC.

advice : Clients, Deadlines, Employment and Valuation

HMRC’s Employment Related Securities Bulletin 44 announced that the valuation agreement period for EMI options will revert to 90 days from the 1st of December 2022. 

Any EMI valuation agreement letters issued by HMRC on or after that date will therefore be valid for 90 days only.

It was agreed in the past that Covid-19 could lead to delays in granting EMI options. Therefore, in Employment Related Securities Bulletin 35, MHRC extended the agreement period to 120 days. 

If you would like further information on EMI valuations, please visit the official government website or get in touch with our team.

EMI Valuations benefits & process

EMI options scheme presents multiply benefits. One of them is an opportunity to receive an agreed-upon valuation of its shares from HMRC before granting them to your employees. Receiving this valuation will provide some certainty to the company and its employees regarding shares value and tax treatment in the future (if required processes are followed).

You can get your shares valuation from HMRC by applying via email or post. You will need to get your valuation report done that includes two key values: Unrestricted Market Value (UMV) and Actual Market Value (AMV).

UMV is the market value of the securities immediately after the chargeable event assuming there were no restrictions on the securities.

AMV is the value of the shares after they have been restricted.

Your accountant will be able to provide you with more information on how to prepare your valuation or help identify it. Your valuation has to be submitted with a signed VAL231 online form.

For more information on EMI valuations, including details regarding special events or complaints, please visit the GOV.UK website.

The information available on this page is of a general nature and is not intended to provide specific advice to any individuals or entities. We work hard to ensure this information is accurate at the time of publishing, although there is no guarantee that such information is accurate at the time you read this. We recommend individuals and companies seek professional advice on their circumstances and matters.