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Worked Examples Group Update: First Worked Example Agreed with HMRC

An important phase in collaboration between HMRC and the employee share scheme sector was marked on July 9th 2018 with the publication of the first jointly agreed worked example on the website of the Employee Share Ownership (Esop) Centre.

The Centre hosts WEG – the share valuation Worked Examples Group – whose members include representatives from leading share scheme bodies meeting with HMRC. Agreed examples will be published first as Understandings on the website of the Esop Centre and later by HMRC, to make the work of valuation simpler.

The first worked example to be agreed was submitted by WEG member Graeme Nuttall OBE of Fieldfisher. It covers particular circumstances in which actual and unrestricted market values may be the same, with the example of Healthcare CIC.

WEG is chaired by William Franklin, partner in Pett Franklin, who developed the idea with Tony Spindler of HMRC.

Malcolm Hurlston CBE, Esop Centre chairman, said on behalf of the WEG team: “Today’s publication of the Healthcare worked example is a significant moment in working with HMRC. In the past collaboration has typically been good but changing pressures of demand and staffing have made this new approach the best way forward.

“Other worked examples are in the pipeline and practitioners are encouraged to submit suggestions to the secretariat:

“I congratulate William Franklin and Tony Spindler on foresight from which many will benefit.”

Members of the group include: William Franklin (Esop Centre), Graeme Nuttall OBE (Employee Ownership Association), Graham Muir (Share Plan Lawyers’ Group) and Ian Murphie (ProShare). David Craddock (Esop Centre) is technical secretary.

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