PARLIAMENTARY WRITTEN QUESTION
Employee Ownership (14 March 2016)

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect on employee ownership schemes of the decision by HM Revenue and Customs to withdraw its valuation check service; and if he will make a statement.

Asked by:
Gareth Thomas (Labour)

It is not anticipated that HM Revenue and Customs’ (HMRC) withdrawal of some valuation services will impact the take up of employee ownership schemes.

HMRC has announced the withdrawal of income tax and PAYE post-transaction valuation checks, but has not withdrawn those valuation services that are most relevant to employee ownership schemes. These consist of:

• 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. Most people submit acceptable valuations in respect of these schemes, and HMRC is therefore considering whether the valuation service offered continues to be needed.

Answered by:
Mr David Gauke (Independent)
17 March 2016