Income Tax (Earnings and Pensions) Act 2003

Determination of market value of shares

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56(1)This paragraph applies to the determination of the market value of shares for the purposes of the EMI code.

(2)Unless—

(a)it is agreed between the employer company and the Inland Revenue, or

(b)a reference is made under sub-paragraph (4),

the market value of shares is to be determined by the Inland Revenue.

(3)Where the market value of shares on any date needs to be determined for the purposes of the EMI code, the Inland Revenue and the employer company may agree that it is to be determined by reference to a date or dates, or to the average of the values on a number of dates, stated in the agreement.

(4)At any time before notice of the Inland Revenue’s determination has been given to the employer company, the company may give the Inland Revenue a notice requiring the question of the market value of the shares to be referred to the Commissioners.

(5)Any reference under sub-paragraph (4) must be made—

(a)to the General Commissioners, or

(b)if the applicant so elects (in accordance with section 46(1) of TMA 1970), to the Special Commissioners.

(6)The Commissioners to whom the reference is made must determine it in the same way as an appeal.