The End is Near For The Extended EMI Valuation Period

During the COVID pandemic, HMRC extended the period of time for which an agreed valuation of shares to be used for Enterprise Management Incentive “EMI” options remained valid (assuming no material changes occurred during the meantime) from 90 days to 120 days.  However, on 14 July 2022, HMRC announced that the period was reverting back to 90 days on 1 December 2022.  Therefore, any EMI valuation agreement letters issued on or after 1 December 2022 will be valid for 90 days only.

As a reminder, when agreeing a valuation for EMI purposes, HMRC state that it is agreed on the proviso that there are no changes prior to the granting of the options that could affect the accepted value.  HMRC state that such changes include (note that this is not an exhaustive list):

  • Any change (completed or actively contemplated) in the share or loan capital of the company;
  • Any arm’s length transactions (completed or actively contemplated) involving shares of the company;
  • Negotiations or preparations for a flotation or takeover;
  • Any declaration of a dividend on any class of shares in the company; or
  • The publication by the company of any new financial information, for example, the annual accounts or interim results or announcement.

RM2 are experienced at completing and agreeing valuations with HMRC for EMI purposes, and can advise on the design and implementation of employee incentive arrangements including EMI options.  RM2 also offers an administration service for employee incentive arrangements, meaning that we can advise you throughout the entire life-span of the incentive arrangement from design and valuation to the making of awards and beyond. 

If you would like more information on the services RM2 offer please contact us at and we can arrange a call for you with one of our specialist advisers.