Taxpayers can make a claim to realise a loss, potentially reducing their tax liability, if assets they own have become of “negligible value”. The person is treated as disposing of, and reacquiring, the asset at the stated value (TCGA 1992, s. 24(2)).
The relief applies both for capital gains tax purposes as such and for corporation tax, with slight variations in how the rules apply.
The onus is on the taxpayer to show that the asset has become of negligible value. However, for shares in previously quoted companies, HMRC publish a list of shares and securities that have been accepted as being of negligible value.
HMRC’s latest published list can be used to identify shares that have been declared as having negligible value up to and including 31 October 2022.
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Written for accountants and other tax advisers at an intermediate level, Capital Gains Tax is built firmly on a foundation of statutory rules and case law principles. It is illustrated throughout with practical examples, and most chapters include a summary of pitfalls and planning points.