Negligible value claims – CGT background

Where an asset has become of negligible value during the period in which it is owned the owner may make a ‘negligible value claim’ under TCGA92/S24(1A). The asset is then treated as having been sold and immediately reacquired by the owner for an amount equal to the (negligible) value specified in the claim. This deemed disposal takes place, and hence any allowable loss accrues, either at the time of the claim or at an earlier time as permitted by TCGA92/S24(2). There is guidance on negligible value claims at CG13118+.