If shares or another chargeable asset you own have become effectively worthless, a negligible value claim lets you crystallise the Capital Gains Tax loss without needing to find a buyer. This guide explains who qualifies, how the claim works, and how to use the resulting loss.
What the Claim Does
Normally a Capital Gains Tax loss only arises when you actually dispose of an asset for less than you paid for it. A negligible value claim is an exception: it lets you tell HMRC that an asset has become of negligible value while you still hold it, and treats you as having sold and immediately reacquired it at that negligible value, so an allowable loss is crystallised even though you have not sold anything to a third party.
This is most useful when a company you hold shares in has gone into liquidation, been dissolved, or otherwise ceased to have any realistic value, and there is no practical market to sell the shares into.
The Negligible Value Test
The asset must have become of negligible value while you owned it -- essentially worth next to nothing rather than simply having fallen in price. HMRC publishes a negligible value list of shares it has previously accepted meet this test, which can support your own claim, though you still need to make the claim yourself and it must reflect your specific holding.
How to Make a Claim
Claims are usually made through your Self Assessment tax return, or by writing to HMRC outside a return if you are not otherwise required to file one. You need to identify the asset, the date you are claiming it became negligible in value, and evidence supporting that -- such as liquidation notices or confirmation the company has been struck off the register.
Backdating the Claim
You can, within certain time limits, specify an earlier date on which the asset became negligible in value, provided you owned it and it genuinely was of negligible value at that earlier date. This can allow the resulting loss to be set against gains from an earlier tax year, which is worth checking carefully if your circumstances mean a different tax year would use the loss more efficiently.
Using the Loss
Once crystallised, the loss is used exactly like a loss from an ordinary disposal: it is set first against other capital gains realised in the same tax year, and any amount left over is carried forward to set against gains in future years. In some cases, losses on qualifying trading company shares can instead be set against income under separate share loss relief rules, which is worth checking if the standard capital loss treatment would not be efficient for your situation.
Frequently Asked Questions
What is a negligible value claim?
A negligible value claim lets you tell HMRC that an asset you still own -- typically shares in a company that has failed or been dissolved -- is now worth next to nothing, so that you can treat it as if you had sold and immediately reacquired it at that negligible value, crystallising an allowable capital loss without actually disposing of the asset to anyone else.
Do I have to actually sell the shares to claim the loss?
No, that is the whole point of the claim. Normally a capital loss only arises on an actual disposal, but a negligible value claim treats the asset as sold and reacquired at its negligible value on the date you specify, letting you realise the loss for tax purposes while you continue to legally hold the (now worthless) shares.
What counts as "negligible value"?
The asset must have become of negligible value while you owned it -- essentially worth next to nothing, not merely reduced in value. Shares in a company that has gone into liquidation, been struck off the register, or otherwise ceased to trade with no prospect of recovery are the most common example, though the test applies to other chargeable assets too.
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Does HMRC maintain a list of shares accepted as negligible value?
HMRC publishes a negligible value list of shares and securities it has previously agreed are of negligible value, which can support a claim, though being on the list is not a guarantee -- you still need to make the claim yourself and it needs to reflect your own specific holding and circumstances.
Can I backdate a negligible value claim?
Yes, within limits. You can specify an earlier date (within certain time limits) on which the asset became of negligible value, provided the asset was indeed negligible in value at that time and you still owned it then, which can let you set the loss against gains from an earlier tax year in some circumstances.
How do I use the loss once I have made the claim?
Once crystallised, the capital loss is used in the same way as a loss from an actual sale: first set against other capital gains in the same tax year, with any unused amount carried forward to set against gains in future years, reported through your Self Assessment return.
Can I claim negligible value loss relief against income instead of gains?
In some cases, losses on qualifying trading company shares can be set against income rather than only capital gains, under separate share loss relief rules -- this has its own qualifying conditions and is worth checking separately from the negligible value claim itself.
What evidence do I need to support the claim?
Keep evidence of when and why the asset became worthless, such as liquidation or dissolution notices, correspondence from an administrator, or confirmation the company has been struck off, since HMRC can ask you to justify both the negligible value and the date you have claimed.
Does a negligible value claim apply to assets other than shares?
Yes, in principle it can apply to any chargeable asset that has become of negligible value, not only shares, though shares in failed companies are by far the most common practical use of the claim for individual investors.
Is there a time limit for making a negligible value claim?
Yes, negligible value claims are generally subject to the standard four-year time limit for claims, running from the end of the tax year to which the claim relates, so it is worth acting promptly once you believe an asset you hold qualifies rather than leaving it indefinitely.
Disclaimer: This guide reflects negligible value claim rules for Capital Gains Tax as they apply in 2026/27. This guide is for general information only and is not professional advice. Consult a qualified adviser and refer to gov.uk for current official guidance before relying on any treatment.
