Glossary · UK
What is Negligible Value Claim?
A claim that lets you treat an asset that has become almost worthless as sold and reacquired, crystallising a capital loss without an actual sale.
Full Definition
A negligible value claim allows you to realise a capital loss on an asset that has become worth next to nothing, without having to actually sell it, which can be difficult when there is no buyer. If you still own the asset, it has become of negligible value while you have owned it, and it was not already worthless when you acquired it, you can claim under the negligible value rules. The effect is that you are treated as having sold the asset and immediately reacquired it at its negligible value, usually nil, crystallising an allowable capital loss equal to your base cost. The claim is commonly used for shares in companies that have failed or been dissolved. You can backdate the deemed disposal by up to two tax years before the year of claim, provided the asset was already of negligible value at that earlier date, which can be useful for matching losses against gains. Losses on shares you subscribed for in qualifying trading companies may instead, or additionally, qualify for share loss relief against income. The resulting loss is set against chargeable gains, reducing the amount taxed at 18% or 24% after the 3,000 annual exempt amount for 2026/27.