Enterprise value meaning

A company share option plan (CSOP) A company share option plan (CSOP) enables tax-favoured options over shares with a value up to £60,000 per person, assessed as at the grant date, to be awarded at the discretion of companies that satisfy the CSOP qualifying criteria, and is commonly adopted by companies that are too large to be eligible to issue enterprise management incentive (EMI) options...

In this issue: Key developments and materials Electricity and gas market regulation, licensing and taxation Networks and network connections Capacity Market, balancing services and energy system flexibility Nuclear energy Oil and gas International energy New and updated content Dates for your diary Trackers Energy resources on Lexis+® Daily and weekly news alerts Key developments and materials DESNZ announces 100 schools now have Great British Energy solar panels DESNZ confirmed that Great British Energy solar arrays are now fitted at 100 schools and colleges nationwide. By summer 2026, roughly 250 institutions will benefit through a focused deployment that gives precedence to deprived communities in the North East, West Midlands and North West, and guarantees a minimum of ten schools in each English region. Across their lifespan, these installations are expected to deliver around £220m in cumulative savings for the 250 schools and colleges, allowing funds to be redirected into teaching spaces. See:...

In this issue: Tax treatment Corporate Governance Useful information Weekly highlights from other practice areas Tax treatment HMRC publishes employee share schemes statistics for the tax year ending 2022 HMRC has released figures for the tax year to 2022 covering the tax-advantaged employee share schemes—company share option plans (CSOPs), enterprise management incentives (EMI), save as you earn (SAYE) and share incentive plans (SIPs). Drawn from share scheme returns, the data sets out how many companies run schemes, how many employees receive or are granted awards, the value of those awards, how many options are exercised, and estimates of the income tax and National Insurance contributions (NICs) relief obtained. Employees are estimated to have benefited from £840m of income tax relief and £560m of NICs relief in that year across the four schemes EMI accounted for the largest share of total relief at £680m Relief on CSOP options stayed far below other schemes at £50m...

See Q&A: A deceased individual held agricultural land in their sole name, used for sheep and cattle farming as a sole trader. They were also a partner with their spouse in a partnership operating a poultry farming business. The partnership owned no land, but among its assets was a poultry house situated on part of the agricultural land. The bulk of the land was employed in the deceased’s sole trader sheep and cattle enterprise. There was no formal arrangement covering the poultry house’s use of the land. Can agricultural property relief be claimed on all the land (including the area occupied by the poultry house) and business property relief on the partnership (encompassing the poultry house)? For broad guidance on agricultural property relief (APR) and business property relief (BPR) and the qualifying criteria for each, see Practice Notes: IHT—agricultural property relief and IHT—business property relief. APR is available on the agricultural value of land and property; that is, on individual assets. BPR is available on the value of...

Family business culture Given the relatively high expense of sourcing and appointing senior staff, holding on to the right people with the right expertise is vital for any firm, and even more so for a family-run enterprise where hiring can be tougher than for rivals. Working in a family company brings upsides; research points to greater loyalty, satisfaction, flexibility and security. Yet drawbacks can appear, such as ambiguity, perceived unfairness, muddled accountability and family politics. The task is to bring in senior leaders who align with the culture and to ensure they are incentivised to remain and help grow the business. Therefore, a family business must shape recruitment and induction so they reflect its distinctive culture and complexity. Not every senior executive will thrive in a family setting, and cultural alignment may, in the end, matter as much as formal credentials. This must be weighed against the need to attract high-calibre people and keep them engaged for the long haul. Practical measures available to family firms include supporting new...

Principal private residence relief Where an individual holds more than one residence, they may, by formally giving notice to HMRC, nominate which property is to be treated as their main residence for principal private residence (PPR) relief purposes. In these circumstances, any period of actual ownership (by election) of the elected PPR should be regarded as fully exempt from capital gains tax (CGT), provided there has been a previous period of actual occupation. In addition, the last nine months of the period of ownership are always deemed to be a period of occupation. Before 6 April 2014, the exemption covered the final 36 months of ownership; it was reduced to 18 months from 6 April 2014, and halved again to nine months for disposals on or after 6 April 2020. Individuals who are disabled or residing in a care home, and who have no other property on which PPR relief can be claimed, continue to benefit from the 36‑month final period exemption...

Process for making confiscation orders in joint enterprise cases There is a three-stage method for calculating a confiscation order under the Proceeds of Crime Act 2002 (POCA 2002): first, determine whether the defendant has benefited from the relevant criminal conduct second, establish the value, i.e. the quantification, of that benefit third, decide what amount is recoverable from the defendant See Practice Note: Confiscation under the Proceeds of Crime Act 2002. This Practice Note outlines how the court approaches the question of benefit in confiscation proceedings arising from joint enterprise cases. For detailed guidance on assessing benefit more generally, see Practice Notes: Confiscation step 1: Does the defendant have a criminal lifestyle?, Confiscation step 2: Has the defendant benefited from relevant criminal conduct? and Determining the recoverable amount (benefit and available amount) under POCA 2002. The leading authority on joint enterprise cases is the Supreme Court’s judgment in R v Ahmad; R v Fields, discussed in News Analysis: Confiscation orders and joint...

Rules of the [ insert name of company granting EMI options ] enterprise management incentives Scheme FORTHCOMING CHANGE: On 26 November 2025, within Budget 2025, it was confirmed that from 6 April 2026 a number of EMI limits will be uplifted: The gross assets threshold will rise from £30 million to £120 million. The cap on full-time equivalent employees will increase from 250 to 500. The overall limit on the value of unexercised EMI options that a company or group can have at any time will go from £3 million to £6 million. The permitted exercise period will also extend from 10 to 15 years. Existing EMI options can be varied to adopt this longer exercise window without forfeiting tax advantages, so long as the changes comply with legislation to be included in Finance Bill 2025-26. In addition, from April 2027 the requirement to notify HMRC of EMI option grants for them to qualify will be abolished, with this measure to...

[ Insert date of letter ] [ Insert name of employee ] [ Insert address of employee ] Dear [ insert name of employee ] [ Insert name of Company ] ( Company ) Option to be granted under the [ insert name of EMI scheme ] (the Scheme ) I am pleased to inform you that the directors of the Company have authorised the award of an enterprise management incentives (EMI) share option to you under the Scheme ( Option ). I enclose a copy of the rules of the Scheme and the option agreement, both of which must be executed by you and the Company so that the grant of the Option can take effect...

FORTHCOMING CHANGE: On 26 November 2025, as part of Budget 2025, it was confirmed that, with effect from 6 April 2026, the following EMI parameters will be uplifted: The gross assets limit will rise from £30 million to £120 million. The maximum number of full-time equivalent employees will increase from 250 to 500. The overall limit on the value of unexercised EMI options that a company or group can have in existence at any given time will go from £3 million to £6 million. The permitted exercise period will extend from 10 years to 15 years. It will also be possible to amend existing EMI options to reflect this longer exercise period without losing tax advantages, provided the changes are consistent with the legislation (which will form part of Finance Bill 2025–26). Furthermore, it was announced that, from April 2027, the requirement for the grant of EMI options to be notified to HMRC in order for them to take...