Company valuations for share schemes

Frequently asked questions

• Why do I need a valuation?

  If you're thinking of setting up a share scheme, it's highly likely you'll need a valuation for:

  • Tax purposes
    
    You need to know the value of your company’s shares to calculate how much tax is due on your side. And to give recipients tax certainty too, should they wish to exercise their right to buy their EMI options for instance, which is just one example. Plus, depending on the scheme you set up and whether it qualifies for tax relief, there could be a limit on the value of the shares you can give in the first place.
    
    
  • HMRC
    
    For government-backed schemes such as EMI, SIP, CSOP and SAYE, if HMRC’s Shares and Assets Valuation team agree with the value of the company’s shares (as outlined in the valuation) then you can be assured of tax certainty. Without that confirmation, there’s a risk of both the company and the intended beneficiaries of the scheme losing out on the tax benefits.

• What kind of valuation do I need?

  It depends on the scheme you’re setting up. Because of the tax and legal implications, share scheme valuations are a specialist area. (Good thing you’re talking to share scheme specialists!)

  If you're setting up an EMI or CSOP scheme, we can provide tax valuations ready to go to HMRC. For EMIs, we'll also help with the VAL231 form.

  You'll also need tax valuations for growth shares and unapproved options.

  To reward stock options to US taxpayers, you'll need a 409A valuation, which we can provide for a small additional fee.

  If you’re seeking investment, you need a commercial valuation, which we don’t offer currently (but never say never).

• Why choose Vestd?

  For starters, we have a dedicated in-house valuations team, so you have a single point of contact. We keep up to date with the latest HMRC guidance and have an enviable track record of successful submissions. We take the time to understand your business and personalise reports.

• How many valuations are included in the cost?

  Our standard plan includes one valuation per year. And our guided plan covers up to four per year, which usually is more than enough. (Excludes 409A valuations). Click here for more information on pricing.

  Valuations are only available to existing customers.