Lord Harrison – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Harrison on 2016-03-21.

To ask Her Majesty’s Government what consultation or correspondence they had with companies offering employee share ownership schemes before announcing the withdrawal of HM Revenue and Custom’s valuation check service.

Lord O’Neill of Gatley

HM Revenue and Customs (HMRC) has been consulting representative bodies through the Valuation Fiscal Forum over the last 18 months.

HMRC has not withdrawn valuation services that are most relevant to employee share ownership schemes.

These include:

• Enterprise Management Incentives (EMI),

• Company Share Option Plans (CSOP),

• Save As You Earn share option schemes (SAYE),

• Share Incentive Plans (SIP) and

• Employee Shareholder Status (ESS).

  HMRC has, however, announced a review of the valuation services for those schemes and is consulting interested parties.

  HMRC has withdrawn valuation checks for income tax and PAYE that are not part of these recognised employee ownership schemes. Most people submitted acceptable valuations and therefore the valuation service offered was not seen as needed.