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Four leading UK employee share plan bodies have formed an expert group to be 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 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 this 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”
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.
Please direct any queiries to: Robert Jarvis Esop Centre
Robert Jarvis
rjarvis@hurlstons.com
0207 239 4971
www.esopcentre.com
Editor’s Notes
Employee Share Ownership Centre (Esop) Centre is the leading advocate of all-employee share ownership in the British Isles and worldwide, founded in 1987 by Malcolm Hurlston CBE.
The Centre lobbies and researches in the interest of developing all forms of broad-based employee share ownership plans. The Centre works with governments, the European Commission, businesses and employee organisations to build widespread support for employee share ownership and spread the wages of capital.
The Employee Ownership Association (EOA) represents organisations which are employee owned or transitioning to employee ownership across the UK. The EOA is a not for profit and politically independent organisation and its core purpose is to grow employee ownership in the UK. The EOA works in close partnership with its members to champion, promote and provide insight into the business case for employee ownership. Members benefit from unique learning, networking and trading opportunities across the network of diverse companies of all sizes and sectors.
For more information on the EOA visit: www.employeeownership.co.uk
Twitter: @employeeownership
Facebook: / EmployeeOwnershipAssociation
LinkedIn: Employee Ownership Association
ProShare is the voice of the UK share plans industry. Founded in 1992, our purpose is to ensure that a level playing field exists for all involved in employee share plans.
For further information contact Gabbi Stopp at gabbi@proshare.org or 0207 444 7141.
The Share Plan Lawyers Group was formed approximately 25 years ago by lawyers whose main practice is employee share arrangements. It has nearly 300 members representing more than 60 law firms and a number of specialist practitioners. Members include senior lawyers from all the major London law firms and most major regional firms in the UK. The main purpose of the group is to meet, consult with and make representations to the Government and other institutions involved in taxation, corporate, regulatory and other issues in relation to employee share plans.
For more information on the Share Plan Lawyers Group visit: http://shareplanlawyers.org/