CG13125 - Introduction and computation: occasions of charge: assets lost/destroyed/negligible value: negligible value

Throughout this manual, all legislative references are to the Taxation of Chargeable Gains Act 1992 (TCGA 1992) unless otherwise stated.


The content of this manual covers a much higher level of detail compared to say a helpsheet supporting the Self Assessment tax return. If you are looking for an introduction to the main rules for making negligible value claims, please see the Negligible value claims and agreements on GOV.UK. For Self Assessment guidance on negligible value claims and losses on share disposals, please see Negligible value claims and Income Tax losses on disposal of shares (Self Assessment helpsheet HS286) on GOV.UK and select the tax year you are considering. 

 

Section 24(2) – negligible value claims 

Under section 24(1A), the owner of an asset may make a negligible value claim to HMRC if either condition A or condition B is met, see section 24(1)(b) and section 24(1)(c). 

There is no requirement to make a claim within a specified time of the asset having become of negligible value. 

Section 24(1A) says that a negligible value claim may be made by the owner of an asset. This means the asset must still exist when the negligible value claim is made. If the asset has ceased to exist then the negligible value claim will not succeed. Instead, there will have been an actual disposal under section 24(1). 

The asset that is the subject of the claim needs to be of negligible value at the date of the claim and at the date of the deemed disposal and reacquisition (if different), see CG13130. 

 

Effect of a successful negligible value claim 

A successful negligible value claim simply results in the claimant being treated as if the asset that is the subject of the claim had been sold and immediately reacquired for its negligible value.  

If, as a result of a satisfactory negligible value claim, there’s a capital loss, it is necessary for the claimant to notify that capital loss to HMRC in order for it to be an allowable loss. This notice needs to be given in addition to a negligible value claim, although the two things may be sent to HMRC in the same return, letter or other document.  

If you receive a claim for negligible value in respect of