CG13133 - Assets lost/destroyed/negligible value: become of negligible value

Section 24(2) requires the claimant to show that the asset has become of negligible value. If the asset, a holding of shares say, was of negligible value when it was acquired by the claimant, it cannot have become of negligible value. In such cases, the test in Section 24(2) will not be satisfied and there is no valid claim. You should though accept that the value of an asset has become negligible if

• the value of the asset is negligible at the date of claim

and

• the claimant acquired it in a transaction to which one of the no gain/no loss provisions in TCGA92/S35 (3)(d) applied

and

• the asset had a non-negligible value in the hands of the person making the no gain/no loss disposal or any earlier holder in an unbroken series of no gain/no loss transactions.