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HMRC internal manual

Capital Gains Manual

Introduction and computation: occasions of charge: assets lost/destroyed/negligible value: form of claim

TCGA92/S24(2) – form of a negligible value claim

Section 24(2) does not specify the form in which a negligible value claim has to be made and no separate claim form is provided.  Claims by companies should be made in accordance with FA98/SCH18 Part VII (See CTM90600 onwards) and by other persons in accordance with TMA70/S42 (see SACM3000 onwards).

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

The date of the deemed disposal should be specified in the claim if the claimant wants the asset deemed to be sold and reacquired at a date before the claim was made (see [CG13130](

When you acknowledge that you have received a negligible value claim, it is preferable to avoid using words such as ‘accept’ or ‘admit’ which might lead the claimant to believe that their claim is acceptable at that stage.  This is particularly important where any necessary valuations (see, for example, CG13140) have still to be negotiated or agreed.

The following paragraphs give guidance on dealing with negligible value claims:

Remember that 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.  Any allowable loss accrues from that deemed disposal rather than from the negligible value claim itself.  So a negligible value claim should only be refused if the conditions for the claim are not met because

  • the claimant is not the owner of the asset when the claim is made (i.e. because there has been an earlier disposal of the asset, such as a disposal within section 24(1)), or
  • the asset has not BECOME of negligible value (see CG13125) at the date of the claim, or any earlier date specified in the claim when the claimant wants the asset deemed to be sold and reacquired.

A negligible value claim should not be refused on the grounds that the quantum of any allowable loss accruing from the deemed disposal cannot be agreed.  For guidance on how to agree the amount of any allowable loss arising from a disposal, see CG15812 and CG15813.