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Share Valuation: William Franklin to chair Worked Examples Group with HMRC

Four leading UK employee share plan bodies have formed an expert group called WEG (Employee Shares Worked Examples Group) which will work with HM Revenue & Customs to publish examples of share valuations over a wide range of employee share ownership and employee ownership arrangements.

HMRC Shares and Assets Valuation (SAV) currently publishes a limited number of worked examples of share plan valuations. WEG will review and agree with SAV additional example valuations suitable for publication online as illustrative case studies either by HMRC or by WEG and member bodies.

The formation of the group was announced October 31 by Tony Spindler of SAV, HMRC at its annual Fiscal Forum meeting.

The aim of the joint initiative is to create better understanding and reduce uncertainty for practitioners following the withdrawal of the HMRC post valuation transaction check procedure.

Share plan practitioners are invited to submit worked examples for assessment, agreement with HMRC and online publication to weg@esopcentre.com.

The Employee Ownership Association, the Esop Centre, ProShare and the Share Plan Lawyers Group have formed WEG as a body of experts, with HMRC, so that efficient access to current valuation practice can help promote employee share ownership.

Launching the new service at the SAV Fiscal Forum on October 31 2017, William Franklin, WEG chairman and partner, Pett Franklin, said:

“WEG was born from a joint desire to work with SAV and create guidance in the form of worked examples to mitigate uncertainty.”

Tony Spindler, SAV, HMRC said:

“HMRC welcome this share scheme industry initiative and the opportunity it provides for constructive dialogue. The WEG will provide a framework that assists compliant customers to get things right, allowing HMRC to concentrate on the minority that seek to test the boundaries.”

Graeme Nuttall OBE, partner Fieldfisher and Employee Ownership Association Specialist Adviser said on behalf of the EOA:

“Valuing shares is a key part of moving to employee ownership as well as maintaining employee ownership business models. We welcome the opportunity to share best practice to help the continued growth of the sector.”

Gabbi Stopp, ProShare said:

“Business owners, leaders and employee share plan participants require certainty on share valuations. ProShare is delighted to work with the EOA, ESOP Centre, Share Plan Lawyers Group and HMRC on the Worked Examples Group.”

Graham Muir, partner CMS said on behalf of the Share Plan Lawyers Group:

“HMRC has for many years been proactive in supporting employee share plans and we look forward to share plan practitioners putting forward for publication a range of worked examples of general application in the employee share plan space.”

The Esop Centre is providing the secretariat to WEG, with David Craddock as technical secretary.

Pett, Franklin & Co. LLP are experts in employee share schemesexecutive incentives and share valuations. To find out more about we how we can help you or your client, please contact William Franklin on william.franklin@pettfranklin.com or call 0121 348 7878.

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