By Bill Anderson, Senior Valuation Advisor & RICS Associate, Assetica — 2026-05-06
How UK companies value shares for EMI option schemes, how to agree the valuation with HMRC, and why getting it right protects both the company and its employees.
An EMI valuation sets two figures: the actual market value (AMV) and the unrestricted market value (UMV) of the shares. Because option holders take a minority, often restricted, interest, discounts for lack of control and marketability apply, usually producing a value well below a headline equity figure.
The valuation is submitted to HMRC on the appropriate form before options are granted. Once agreed, it is typically valid for 90 days, giving the company a window to grant options at a certain, defensible exercise price.
An independent valuation prepared to recognised standards is more readily accepted by HMRC and protects the scheme. A poorly supported or inflated value risks rejection, delay, or loss of the tax advantages that make EMI worthwhile.
What is an EMI share valuation?
It is the market valuation of shares granted under an EMI option scheme, submitted to HMRC for agreement before grant. It establishes the actual and unrestricted market values used to set the option exercise price.
Why is the EMI value lower than my company's headline valuation?
Because option holders take a minority, often restricted, interest. Discounts for lack of control and marketability apply, producing a value below the full equity figure.
How long is an HMRC-agreed EMI valuation valid?
Typically 90 days from agreement, within which the company can grant options at the agreed value before a fresh valuation is needed.