CG56550 - Employee share schemes: valuations

The guidance at CG56320-56534 mentions occasions where it may be necessary to employ valuations of shares or securities, or rights over shares or other securities, in order to calculate any Capital Gains Tax liabilities arising in connection with employee share schemes.

If you need to obtain a valuation, the procedure will depend on the asset transferred.

• In public offers, see CG56330, you should take the price at which the shares or other securities were offered to the public as the open market value.
• In other cases where the shares or other securities are quoted, you should follow the instructions at CG59510+.
• In cases involving unquoted shares or other securities, you will need to seek advice from Shares and Assets Valuation, unless a valuation has already been obtained in connection with any employment income liabilities arising on the transaction. Form CG30 should be used, see CG59560+.

In cases where a valuation is needed, you should bear in mind that a valuation may already have been obtained in order to calculate any employment income liabilities on the employee. You can use this valuation also for computing any capital gains liabilities on the employee. If, however, the taxpayer wishes a separate valuation to be made for Capital Gains Tax purposes you should obtain this from Shares and Assets Valuation, as above.