Taxation of chargeable gains: use of form CG34 and our post transaction valuation service

We offer a free valuation checking service to help you complete the details of your capital gains on your tax return. You can ask us to check valuations after you have made a disposal of a chargeable asset but before you make your return. You can use this service by completing form CG34 (PDF 30K).

Where an asset has become of negligible value the owner may claim to be treated as though it had been sold and immediately reacquired for the amount specified in the claim (section 24(2) Taxation of Chargeable Gains Act 1992). Where the asset is treated as having been sold, the owner may then calculate the capital loss arising from that deemed sale and give us notice for it to be an allowable capital loss.

We have recently revised our guidance in the Capital Gains Manual at CG13130, 13131 and 16601 and form CG34 (PDF 30K) will be revised to make it clear that the post transaction valuation service may be used for an asset that is the subject of a negligible value claim. Form CG34 cannot precede the negligible value claim for an asset. We will, however, accept that a post transaction valuation check is made after the negligible value claim is made if form CG34 is submitted at the same time as the claim.

You should note that any acceptance of your value does not necessarily mean that, at that stage, we accept all the conditions for a negligible value claim are met or that any allowable loss arises.