Valuations may be required for tax purposes in many different scenarios, including:

1. •

   on grant of share options to employees in a tax-advantaged share scheme

2. •

   to ‘rebase’ assets to their value as at 31 March 1982

3. •

   where assets are transferred between connected parties

4. •

   where shares are acquired at undervalue by reason of someone’s employment

This guidance note is concerned with share valuations for tax purposes. For guidance on performing share valuations more widely, including for commercial purposes, and the risks involved for the practitioner, see the Professional valuations guidance note. For guidance on specific commercial valuation methods which may also be relevant to tax valuations, see the Measures and methods of valuation guidance note.