Why does my share plan need a valuation agreed with HMRC?

By obtaining a valuation with HMRC employees (and the company) have some certainty regarding their tax treatment of shares and options going forward (so long as all other share plan criteria and processes are followed).

Agreeing the valuation before options are granted creates clear evidence on the value at grant of shares/options for any future due diligence if the company is sold.

Valuations agreed with HMRC’s Shares and Assets Valuation team are valid for between 90 days and 6 months depending on the type of share plan they have been requested for.