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 assessment they have made of the impact on UK productivity of the planned withdrawal of HM Revenue and Custom’s valuation check service.

Lord O’Neill of Gatley

No impact on UK productivity is anticipated. HMRC has not withdrawn the valuation service for those share schemes most relevant to small and medium sized enterprises.

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  HMRC has withdrawn valuation checks for income tax and PAYE that are not part of these recognised employee ownership schemes.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.