Question to the HM Treasury:

To ask Her Majesty’s Government what advice they received on the impact on small and medium-sized enterprises’ productivity levels following the withdrawal of HM Revenue and Custom’s valuation check service.

No impact on the productivity of small and medium-sized enterprises is anticipated. HMRC has not withdrawn the valuation service for those share schemes most relevant to these enterprises.

These include:

• Enterprise Management Incentives (EMI),

• Company Share Option Plans (CSOP),

• Save As You Earn share option schemes (SAYE),

• Share Incentive Plans (SIP) and

• Employee Shareholder Status (ESS).

  HMRC has however announced a review of the valuation services for those schemes and is consulting interested parties.

  HMRC has withdrawn valuation checks for income tax and PAYE that are not part of these recognised employee ownership schemes. Most people submitted acceptable valuations and therefore the valuation service offered was not seen as needed.