CGT negligible value claim

If you own an asset that has become of negligible value, i.e. worthless, you can make a negligible value claim which entitles you to treat the asset as if it were sold for nothing. The effect of this is to create a capital loss.

Unrealised losses

Normally, you can only claim a capital loss where you sell or transfer an asset for less than it cost you, or if you received the asset as a gift, at its market value at the time. However, there is an exception to the normal rule where an asset has become worthless, i.e. has a negligible value. In that case you can make a claim for a capital loss equal to its cost to you (or deemed cost if you acquired the asset as a gift).

quoted shares - negligible value list

Where the asset is quoted shares HMRC keeps a list of those that are recognised as having negligible value (see https://www.gov.uk/guidance/negligible-value-agreements).

Checking negligible value

HMRC operates a post-transaction valuation service for capital gains, which is accessed by submitting Form CG34 (https://www.gov.uk/government/publications/sav-post-transaction-valuation-checks-for-capital-gains-cg34) to HMRC. You can also use this service to confirm that an asset has become of negligible value. Submit the Form CG34 at the same time as your negligible value claim.

Time limit

You can make a negligible value claim at any time after an asset has become worthless. You can defer a claim until you have gains against which the loss can be used. For individuals, deferring your claim this way prevents the loss being wasted on a gain that would not be taxed because it is equal to or less than your annual capital gains tax exemption. The shares will be treated as though you sold them on the date you made the claim or up to two years before the tax year in which you make the claim (as long as they were worthless at the time).