CG13129 - Assets lost/destroyed/negligible value: dealing with claims

The following paragraphs give guidance on dealing with negligible value claims. CG13130 - CG13132 apply to claims involving shares. CG13133 applies generally. There is guidance on claims in respect of certain other assets elsewhere in the manual. CG13121 tells you where to look.

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 TCGA92/S24 (1) of, say, shares in a company when it is dissolved and struck off the Register of Companies), or
• the asset has not become of negligible value (see CG13133) at the date of the claim, or any earlier date specified in the claim when the taxpayer wants to be treated as if the asset had been sold and reacquired.

A negligible value claim should not be refused because the quantum of any 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.