CG13140 - Introduction and computation: occasions of charge: assets lost/destroyed/negligible value: quoted shares

Quoted shares

Shares and Assets Valuation (SAV) are responsible for determining whether quoted shares were of negligible value at the relevant date(s).  Currently where SAV have agreed that quoted shares are of negligible value, this is published on gov.uk.

If you receive a negligible value claim in respect of quoted shares that:

• are not listed as being of negligible value, or
• are claimed to have been of negligible value at a date earlier than that shown,

you should make a request to SAV. 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 SAV to consider the value of the shares on both dates (see CG13130.

An entry on gov.uk 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 s16(2A) TCGA92 and when you need to refer valuations to SAV 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.

Example

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.