Tax Valuations

Company valuations can be required for a variety of purposes and a valuation for one purpose will often have different parameters and ultimately a different value than for another purpose.

As well as providing valuation services under RMT’s Corporate Finance Team, we can also provide specialist Tax Valuations.

Tax valuations are often complex and subjective and must take into account tax specific case law in order to determine the information that is allowed to be used to undertake such a valuation. In some circumstances, taxpayers are required by legislation to determine the market value of an asset for tax purposes. Engaging with us to carry out a robust tax valuation can potentially reduce the tax costs compared with carrying out a valuation based on normal Corporate Finance principles.

Our team have many years’ worth of experience in preparing valuations for tax purposes, and of working with HMRC’s Share and Asset Valuation Team. The tax valuation services we offer include:

• Undertaking a valuation relating to approved employee share schemes, including Enterprise Management Incentive (EMI) schemes and Share Incentive Plans;
• Valuations relating to unapproved employee share schemes;
• Valuations of assets gifted to connected persons;
• Agreeing valuations with HMRC’s Share and Asset Valuations Team, including in advance of issuing options under an EMI scheme.

In order to carry out such a robust Tax Valuation service, we will need to get under the skin of your business, find out the key financials and the ultimate reason for undertaking the Tax Valuation.

Once these parameters are set, we can then determine the information that can be used under case law principles and produce a robust report setting out our conclusions.