Contact Us

288 Oxford Road, Gomersal
Cleckheaton, BD19 4PY

Search News


What is a negligible value claim?

Source: HM Revenue & Customs | | 05/11/2019

A negligible value claim is a claim made by a taxpayer when an asset they own has become of negligible value, i.e. it is worthless or worth next to nothing. The taxpayer effectively treats the asset as having been disposed of and then immediately reacquired at the negligible value. The asset must still be owned by the person making the claim and must have become of negligible value whilst it was owned.

Making a claim allows the owner of the asset to realise a capital loss in respect of an asset without actually having to dispose of it.

By making a negligible value claim, rather than selling an asset, the taxpayer retains ownership and may benefit should the asset ever recover in value; even if this is only a remote possibility.

HMRC publishes a list of shares or securities, formerly quoted on the London Stock Exchange, that have been officially declared of negligible value for the purposes of making a claim. In other cases, an application should be made to HMRC to agree a valuation.

A negligible value claim can be back-dated to an earlier time falling in the previous two tax years provided all the other qualifying conditions are met.



 

Latest News

Employer toolkit for EU Settlement Scheme published
19/02/2020 - More...
Following Brexit, the government has published an updated toolkit for employers on how to support their employees who

Change to the off-payroll working rules
19/02/2020 - More...
As part of a review into changes to the operation of the off-payroll working rules (IR35), HMRC has announced that the

Could you claim the marriage allowance?
18/02/2020 - More...
If you are entitled to the marriage allowance and have not yet applied, you could receive a payment of up to

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

Copyright © 2020 - Calvert Dawson

Cookie Policy | Privacy Policy

           ICAEW-White                       

 

Save

Save