Can you claim tax on a worthless asset
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.
Should I file a negligible value claim or sell the asset?
By making a
negligible value claim rather than selling an asset, the taxpayer retains ownership and may benefit should the asset ever recover in value, even if this is only a remote possibility. HMRC publishes a
negligible value list, which lists shares or securities formerly quoted on the London Stock Exchange that have been officially declared of negligible value to make a claim. In other cases, an application should be made to HMRC to agree upon a valuation.
Can my claim be backdated?
A negligible value claim can be backdated to an earlier time falling in the previous two tax years from the tax year the claim is made, provided all the other qualifying conditions are met. HMRC’s guidance on making a claim has recently been updated. The negligible value list when shares can be declared worth a negligible value has been updated to 30 November 2024.
Maximise Relief with a Negligible Value Claim
Do you have assets that have lost their value? Making a negligible value claim in 2025 could help you secure valuable tax relief. Our specialist tax team is ready to guide you through the process and ensure your claim is accurate and effective.
Contact us today to discuss your options.