CG13131 - Assets lost/destroyed/negligible value: unquoted shares
You may, at your discretion, accept a negligible value claim
in respect of unquoted shares if you consider that the claim is
free from doubt or difficulty, all other conditions for a claim are
met, and all of the following conditions are satisfied: -
- the company is registered in the UK, and
- the company is not registered as a PLC, and
- the capital loss arising from the deemed disposal of shares following the negligible value claim is under £100,000, and
- the company
-
- was in liquidation and insolvent, or
- had ceased trading and had no assets
at the date of the claim and at any earlier date specified in
the claim.
All other cases involving unquoted shares must be referred to
Shares and Assets Valuation, see CG59540+.
It will still be necessary to ask Shares and Assets Valuation
to agree any 31 March 1982 value of the shares, if appropriate.
In addition, a taxpayer can ask for a post transaction
valuation check after the negligible value claim has been made and
before the return showing the loss arising from the deemed disposal
is filed, see CG16601. You may accept that the post transaction
valuation check is made after the claim is made if form CG34 is
submitted at the same time as the claim. CG13128 refers to the
guidance on the procedure for making claims. See CG13130 for an
example.
The guidance in this paragraph only applies to the acceptance
that shares are of negligible value at the time the taxpayer makes
a claim and at any earlier date specified in the claim. It does not
apply to other aspects, such as:
- Whether the shares became of negligible value so that the negligible value claim succeeds (see CG13133), or
- 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, or
- Whether, if the negligible value claim is made in conjunction with a ICTA88/s574 claim (see VCM 45000+), the relief claimed under that section is allowable.
