Restricted reactions

06 June 2007

Issue: 4111 / Categories: Forum & Feedback

Recently, when approaching Shares Valuation Division for EMI valuations, I have found that they are insisting on agreeing both actual market value (AMV) and unrestricted market value (UMV) per share, even when there appear to be no restrictions on the shares

Recently when approaching Shares Valuation Division for EMI valuations I have found that they are insisting on agreeing both actual market value (AMV) and unrestricted market value (UMV) per share even when there appear to be no restrictions on the shares.

The Inspector explained that HMRC policy was now that virtually all shares in unquoted companies were restricted on the basis that without a stock market listing there was no ready market for the shares which consequently were worth less than they would have been if there was a market and that formed a restriction.

In terms of EMI schemes this isn't normally a problem; AMV can be applied to the option price and UMV is just used to determine whether the option holder falls within the £100 000 limit. I have normally managed to agree a difference of...

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