Taxpayers can make a negligible value claim when an asset they own has reduced in value such that it has become of negligible worth. The taxpayer effectively treats the asset as disposed of and immediately reacquired at a negligible value at the time the claim is made. The asset must still be owned by the person making the claim and must have become of negligible value while it was owned. Making a claim allows the asset owner to realise a capital loss on an asset without having to dispose of it.