Shares and Assets Valuation

Company Share Option Plans and Save As You Earn schemes

Contents

How to ask to agree a valuation

If you are operating either of these plans there are a number of occasions when you need to agree the market value of the shares with us. The process is similar to that which applies for the SIP and EMI valuations. However there is no specific form that you need to complete when submitting your valuation. To agree a market value with us, you will need to propose a value for the shares and provide background information to support your proposal. In the first instance this should include:

  • the accounts for the three years preceding the valuation date. (If the company is newly trading accounts which are available at the valuation date if any)
  • Your proposed value with the detailed valuation.
  • Any other information which might be relevant to the valuation (e.g. plans to sell or float the business).

If you do not supply all of that information mentioned above we may need to ask you to supply the missing information before a valuation can begin. This could delay the agreement of the valuation. Once we have the completed information we will tell you within 10 working days what further information we need, if any.

Asking us to agree a valuation is not the same as:

  • requesting approval for the plan or scheme
  • making the annual return required for CSOP or SAYE.

You will need to contact separately the Employee Shares and Securities Unit to fulfil those requirements. If you want further information on any of those plans, keep checking the Shareschemes area which is regularly updated or phone 020 7147 2853.

Professional Representation

You can choose to be professionally represented, for example by an accountant or expert valuation firm. We will deal with any professional advisor you appoint unless you ask us not to do so.

You should make sure that your professional advisor has all the facts, as you will always be ultimately responsible for the accuracy of all the information supplied to us.

Providing Information

If SAV need to ask further questions or to get more information from you we shall do so within 10 working days. We will explain our request as fully, clearly and simply as possible.

We will only ask for information we consider is relevant to the valuation in question. If you think it is not relevant, please tell us straight away. We will consider your reasons carefully and if we think we still need the information we will explain why we need it. You should also tell us if you have any difficulty obtaining information that we have asked for.

We will try to include all the information we need in one request rather than ask for it piecemeal. However this will not always be possible. It may help if you tell us anything you think may be relevant to the questions we have asked or to the valuation as a whole. For example, any special features of the business or financial affairs of the Company, or its directors or shareholders may be relevant. If you reply promptly when we ask for information it will save time and help keep down costs for the Company and us. Otherwise, it may take longer to reach an agreement.

Meetings

If you or your professional advisers ask for a meeting to discuss the valuation, we will try to arrange one at the first mutually convenient opportunity and location. However, it may not always be possible to hold a meeting within a normal response time. Arranging meetings might extend the overall time taken to agree a valuation.

During the negotiation of a valuation

We will always be courteous, fair and professional.

If you or your professional adviser write to us we will aim to respond within 10 working days to every issue or question that you have raised. If we cannot reply within this time, for instance because of the amount or complexity of the material you have sent us, we will let you know the reason for the delay and say when you can expect a full reply.

Keeping you informed

We will explain the reasons for any actions we take while negotiating a valuation. We will tell you, for example, why we

  • think we need a meeting with you
  • need to question any explanation you have given, or
  • propose an alternative to the valuation you have suggested.

Confidentiality

The Company, its directors and its shareholders have the right to the same high degree of confidentiality that all taxpayers receive.

Except in the limited circumstances allowed by law (such as at Appeal Commissioners' hearings) we will only give information to people you have authorised.

The costs to you

We know that dealing with our questions may cost you time and money. So we will only ask for information we reasonably require to agree a valuation.

The time we take

We will negotiate to reach an agreed value as soon as possible. We will aim to do this within four weeks of receiving the information requested, or of receiving any further information we require.

Complaints

Our factsheet C/FS 'Complaints and putting things right'(PDF 264K) explains how we deal with complaints if you think we have made a mistake in dealing with your affairs. If you believe:

  • we have not followed our Service Statement
  • we have denied the Company its rights in some respect
  • we have made a mistake, or
  • we have treated you badly in some way during the negotiation

you can ask for the matter to be reviewed by the Assistant Director in charge of the part of SAV where the valuation was carried out.

If you are still not satisfied you can ask the SAV's Customer Service Manager to examine your complaint. Our factsheet C/FS 'Complaints and putting things right'(PDF 264K) tells you how to do that. The leaflet is also available from any HMRC Enquiry Centre or HMRC office.