One of the benefits of EMI is that you can still get an agreed valuation from HMRC ahead of granting the options. This means that the recipients of the options (and the company itself) have some certainty regarding tax treatment going forward - so long as all due criteria and processes are followed.
Getting a valuation agreed by HMRC will typically take 2-4 weeks from date of submission, depending on whether you submit by email or post. The valuation will usually be valid for 90 days from the date of the agreement letter back from HMRC. No extension will typically be allowed to this.
The first step is to get a valuation report carried out for your company. You can either do this yourself, ask your accountant to do it, or we can help you through the process.
The valuation report must provide two values:
This information is then submitted to HMRC along with the VAL231 online form (https://www.gov.uk/government/publications/asset-valuation-request-for-a-share-valuation-val231). The best way to do this is to fill the VAL231 form in online, download the pdf, print it out, sign it, and then email it along with the valuation report to:
These valuations hold for the company unless there is a Significant Event which includes (but isn’t limited to):
You only need to tell HMRC about a significant event when you next need a valuation. After a significant event, you must reapply to have your shares valued. This doesn't impact any options already granted, but does impact any new grant of options.