Introduction and computation: occasions of charge: assets lost/destroyed/negligible value: quoted shares
TCGA92/S24(2) – quoted shares
Shares and Assets Valuation are responsible for determining whether quoted shares were of negligible value at the relevant date(s). Shares and Assets Valuation periodically provide details of quoted shares that they have accepted are of negligible value to the publishers of Interactive Data (formerly Extel) (see CG59520). These details are then included in Interactive Data. You may accept that quoted shares are of negligible value when this is shown in Interactive Data. Remember that when using Interactive Data, it is important to check the latest cumulative supplement.
If a claimant asks whether some quoted shares are accepted as being of negligible value you should check what information is given in Interactive Data. It may be that:
- Interactive Data does not show that the shares have been accepted as being of negligible value, or
- the claimant considers the shares were of negligible value on a date before that shown in Interactive Data.
In either event a claimant who considers that the necessary conditions for a negligible value claim are met may, of course, make such a claim irrespective of the information shown by Interactive Data.
Just because there is no entry in Interactive Data does not mean that you should reject the claim. It could simply be that no claim has previously been made for those shares, so Shares and Assets Valuation have never considered whether the shares were of negligible value. If you receive a negligible value claim in respect of quoted shares that:
- are not listed as being of negligible value in Interactive Data, or
- are claimed to have been of negligible value at a date earlier than that shown in Interactive Data,
you should send a form CG29 to Shares and Assets Valuation, see CG59517. If the claim is to treat the shares as if they had been disposed of and reacquired on a date before that on which the claim was made, you should ask Shares and Assets Valuation to consider the value of the shares on both dates (see [CG13130](https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13130)).
An entry in Interactive Data means only that the shares are of negligible value at the time shown. It does not apply to other aspects, such as:
- whether the shares became of negligible value so that the negligible value claim succeeds (see CG13125).
- the amount of any allowable loss that results from the negligible value claim (and any notice given under TCGA 1992/S16(2A) and when you need to refer valuations to Shares and Assets Valuation in calculating the amount of a loss once it is established when and how shares were acquired.
In addition, a claimant can ask for a post transaction valuation check after the claim has been made and before the return showing the loss arising from the deemed disposal is filed (see CG16600+). You may accept that the post transaction valuation check is made after the claim is made if a form CG34 is submitted at the same time as the claim. See CG13135 for guidance on the procedure for making a claim.
Mrs A holds 100 shares in Company Y. On the 9 September in a tax year she writes to an officer of HMRC stating that each share is worth £0 and that the shares have thereby become of negligible value. Mrs A includes form CG34 with her negligible value claim (or at a later date before the return for the year is filed) as she intends to claim a capital loss in her return for the year. Later the officer of HMRC informs Mrs A that the shares are of negligible value and the consideration for the deemed disposal is agreed at £0 (note that no comment is made about whether the negligible value claim is successful). Mrs A submits her return for the year, issued after the year for which the negligible value claim was made, in the following tax year and includes the deemed disposal of the shares and her claim for an allowable capital loss on the disposal of those shares.