³ÉÈËÓ°Òô

Assets of negligible value


Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
tag-icon Year-end tax planning

Assets of negligible value


Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
tag-icon Year-end tax planning
imgtext

Generally, a taxpayer can only claim a capital loss in respect of an asset where that asset has been subject to disposal or has been destroyed completely.

If the asset has simply become worthless (of negligible value), but continues to exist and be held by the taxpayer, there is no capital loss under the normal rules, but a claim may be made as described in this guidance note. Negligible value claims are most commonly made in relation to shareholdings, although other types of assets are considered below.

For other commentary on assets becoming of negligible value, see Simon’s Taxes C1.321.

Negligible value claim

The taxpayer may make a claim under TCGA 1992, s 24(2)(a) for an asset, which they own at the time of the claim, to be treated as having been sold and immediately reacquired at the value specified in the claim. The amount specified will normally be the market value of the asset and, in many instances, that value will be zero.

The reason behind the negligible value claim is to allow a taxpayer to

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Powered by
  • 07 Feb 2025 05:00

Home/ Tolley Tax Guidance/ Personal Tax / Year end tax planning

Popular Articles

Owner-Managed Businesses

Wholly and exclusively

Wholly and exclusivelyFor both income tax and corporation tax purposes, one of the fundamental conditions that must be satisfied for an item of expenditure to be deductible, is that it must incurred ‘wholly and exclusively’ for the purposes of the trade, profession or vocation. References to CTA

14 Jul 2020 14:00 | Produced by Tolley Read more Read more
Corporation Tax

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more
Trusts and Inheritance Tax

Winding up a trust ― legal, administrative and compliance issues

Winding up a trust ― legal, administrative and compliance issuesOverviewWhen winding up a trust, there are legal formalities and compliance issues that need to be dealt with, as well as IHT and CGT consequences that flow from the termination. This guidance note considers when and how a trust comes

14 Jul 2020 14:01 | Produced by Tolley Read more Read more
tag-icon Autumn Budget 2024