HMRC's Shares & Asset Valuation (SAV) is to withdraw some valuation check services. SAV says that its valuation resources are being severely stretched. It will withdraw its informal valuation check service for PAYE Health Checks and ITEPA Post Transaction Valuation Checks.

It says that:

"Both these categories of check often involve complex valuation scenarios, which absorb considerable valuer resource but result in no change to the valuation proposed. Currently, almost 90% of ITEPA Post Transaction Valuation Checks and PAYE Health Checks are accepted as submitted.

Accordingly, and in line with HMRC’s Promote, Prevent, Respond Compliance Strategy, SAV will be:

  1. Providing further help to customers, to sustain and improve levels of compliance, by updating guidance in its Manual.
  2. Considering the possibility of running a small number of Valuation Workshops for agents in 2016/17.
  3. Working with colleagues in Special Employer Compliance, Large Business and the Risk & Intelligence Service, to identify the minority of cases from submitted returns where valuation tax risk exists and where a review of the valuation is appropriate.

These informal services will be withdrawn with effect from 31st March 2016. Any requests for ITEPA PTVC/PAYE Health Check valuations received after this date will not be processed.

SAV will also be examining the valuation check service processes relating to Enterprise Management Incentives (EMI), Company Share Option Plans (CSOP), Save As You Earn share option schemes (SAYE), Share Incentive Plans (SIP) and Employee Shareholder (ES) valuations to consider how these services might be improved. In the meantime these valuation check services will continue as they stand.

Capital Gains Tax Post Transaction Valuation Checks, which SAV operates in conjunction with the Valuation Office Agency, will continue by way of the existing CG34 process."


Share valuation is not an exact science, however, SAV applies basic principles based on data from actual sales, case law and business type.  If you would like a second option on a valuation, please email our Virtual Tax Partner® service

See also Incorporation and Valuation this provides guidance on the basic principles involved in any business valuation.