SE11225 - Incentive Award Schemes: valuation of non- cash awards – who does what

The basis of valuation is set out at SE11205. The party responsible for valuation differs according to the circumstances of the arrangement. See below.

The Incentive Award Unit

Where a Taxed Award Scheme (TAS) is entered into, the Incentive Award Unit will agree the amounts chargeable to tax. See SE11235 for guidance on Taxed Award Schemes.

Local Tax Office

Where a PAYE Settlement Agreement (PSA) is entered into, the employer’s Tax Office will agree with the employer the amounts chargeable to tax. See SE11270 for guidance on PSAs.

Employer

Where a direct employer enters details of non-cash awards not dealt with by a TAS or a PSA on forms P9D or forms P11D, the employer has to value the awards; the valuations may be checked later in any normal compliance reviews.

Third party

A third party providing awards not covered by a TAS will have to value awards on any return made under Section 15 TMA 1970 (see SE11215 about such returns). And a third party providing awards not covered by a TAS will have to value the awards when providing the employees with written details.

See Chapter 4 of Self Assessment What it will mean for employers (SAT3 (1995)) about the obligation of third parties to automatically provide such information to employees.