HMRC PTVC announcement

22 February 2016

HMRC announced on 2nd February that it was withdrawing, from 31 March 2016, the facility which allows unquoted companies to agree with HMRC the value of their shares when awarding those shares, or options over them, to employees as part of a company’s plan to encourage employee share ownership.  Given the short notice of this announcement and that it will put the risk of getting the share valuation correct squarely on the shoulders of the unquoted company, regardless of the company’s size, we have joined with ifs Proshare in lobbying HMRC to reconsider the withdrawal of this facility or to at least to put in “safe harbour” measures if HMRC still wants to go ahead with this proposal.