EMI share valuations. A clearer starting point.

Start with the proposed employee share arrangement

Before assessing value, identify the company, the share class and the proposed arrangement. A headline value for the whole business is not automatically the value required for an option over a particular class of shares.

The initial discussion can establish what the valuation is intended to support, who is advising on the arrangement and any planned dates. If the legal documents are still being developed, make that clear so the work can be scoped around the information actually available.

Our focus is the valuation assignment. Legal documentation, eligibility, tax advice and scheme administration need clearly allocated responsibilities rather than being assumed to form part of a valuation fee.

What an EMI valuation scope can cover

A particular submission or response to follow-up questions is not automatically included. Agree those responsibilities and any additional work in the proposal.

What information helps with an EMI valuation?

• The proposed option arrangement and relevant share class.
• The current ownership schedule and details of outstanding options or other interests.
• Articles and relevant shareholder agreements or draft documents.
• Recent accounts, a trading update and forecasts where available.
• Details of recent share transactions, funding discussions or significant changes.
• The intended date, timetable and requirements already identified by other advisers.

This is a starting checklist, not a universal document list. Information requirements depend on the assignment. The short website form does not require financial documents or agreements to be uploaded.

Keep the valuation and scheme work coordinated

A change to the share rights or proposed structure may affect the valuation brief. Let the valuation adviser know if the documents change, rather than assuming an assessment of an earlier version applies unchanged.

The same applies to new information about the business. A significant event or transaction can require consideration of whether the original assumptions still fit the requested work. The engagement should identify the date and information on which the assessment relies.

EMI has conditions governing its use. The official GOV.UK EMI guidance explains the scheme at a high level. Discuss the circumstances with the advisers responsible for eligibility and tax before relying on any treatment.

Agree the scope, fee and timetable

Start with a brief description of the arrangement and the date you are working towards. We can then discuss information requirements, proposed deliverables and who will handle the related work.

Fees are agreed individually for a defined scope. See business valuation costs for questions to ask about revisions, submissions and follow-up. No valuation fee purchases a guarantee of HMRC agreement.

If your enquiry concerns an ordinary ownership change rather than employee options, the share valuation page explains the broader starting questions.

EMI valuation: AMV, UMV and the HMRC process

HMRC’s share scheme guidance identifies VAL231 as the form for seeking agreement of an EMI valuation. For restricted shares, it asks for proposed unrestricted market value (UMV) and actual market value (AMV). Its stated agreement period is 90 days.

Read HMRC’s EMI valuation guidance. Confirm the timetable and relevant facts with your advisers; do not treat this period as a promise of how quickly HMRC will reply.

A previous funding price may be relevant evidence, but different dates and share rights mean it should not automatically be used as the EMI value. Share the transaction documents and proposed option terms so that the assessment can address the right interest.

How much does an EMI valuation cost?

We agree a fee for the specific engagement before work starts. The work depends on the business, cap table, share rights and the information available. This website does not publish a universal EMI tariff.

Ask whether the quote includes the valuation explanation, application preparation, submission and replies to queries. Scheme setup, legal drafting and tax advice should not be assumed to be included. Our valuation costs guide provides a proposal checklist.

Tell us your planned grant date in the follow-up discussion. The short form only needs your name, email and purpose; documents can be discussed later through an agreed channel.

Your questions, answered.