Share Scheme Manual - SSM7.8

Shares acquired other than as employee

(Previously SE2880)

It is possible that the documents will make it clear that the shares were not acquired by employees or directors by reason of their employment (see SSM4.3). If this is so there is no need to ask for a valuation.

Where,however, there appears to be Schedule E liability and the informal valuation suggests that liability arises, the accounts Inspector should:

• first secure the agreement of the company to the existence of Schedule E liability in principle, and

• then ask Shares Valuation Division to negotiate agreed values for the shares.