Share Incentives are proven to an effective method of recruiting, retaining and motivating key employees. If you are considering setting a scheme up, an independent valuation is an important key first step.
There are a variety of share incentive schemes to which can support employee participation in a business, in a tax-efficient manner. If you are considering setting a scheme up, a valuation should be sought to agree the market value of the shares and to determine the tax treatment.
An independent valuation is crucial to determine the viability of the scheme, its design and implementation and ultimately whether it is appropriate for the company and its employees. Note that HRMC will be sceptical of a valuation determined by the company’s own advisers or accountants.
PEM Corporate Finance has experience of providing an independent valuation opinion for new share incentive schemes (such as Share Incentive Plan (SIP) Enterprise Management Incentives (EMI) or Employee Ownership Trusts (EOT)) and regularly undertake reviews of existing scheme. In addition, our tax colleagues at PEM can assist in the design and implementation, operation, and ongoing HMRC compliance of a variety of share incentive arrangements.
Are you an individual or solicitor with questions about valuing a share incentive scheme? Get in touch for an informal chat – every call is treated as confidential and there are no obligations attached. We’re here to be helpful.