HMRC have published a new form ‘Application for agreement to a share valuation’ in connection with an award of shares under an Employee Shareholder (ES) agreement.
This is the share scheme when an employee gives up his employment rights in exchange for shares in his employing company.
Employers will need valuations for capital gains tax, income tax and National Insurance contributions where they intend to award under an ES agreement.
The value of the shares for the purpose of the £2,000 test (to qualify for ES status) will be the actual market value of the shares, taking into account any restrictions (including personal restrictions) on the shares, at the date of the award.
Please see the link below