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Making a Negligible Value Claim
When you own an asset that has become worthless, you don't need to sell it to claim a capital loss for tax purposes. A negligible value claim allows you to crystallise a loss on an asset that has become worth almost nothing while you've owned it, which you can use to reduce yo...
When you own an asset that has become worthless, you don't need to sell it to claim a capital loss for tax purposes. A negligible value claim allows you to crystallise a loss on an asset that has become worth almost nothing while you've owned it, which you can use to reduce your Capital Gains Tax bill. This can be particularly useful for shares in failed companies or other assets that have lost their value but which you cannot actually sell.
What negligible value means
For tax purposes, there is no strict definition of negligible value. It applies to assets that have become worth almost nothing during the period you've owned them.
The key requirement is that the asset must have had some value when you acquired it. You cannot make a negligible value claim on an asset that was already worthless when you bought it—the asset must have lost its value while in your ownership.
How to make a claim
If you have evidence showing that your asset no longer has any value since you acquired it, you can make a negligible value claim to HMRC. This allows you to realise a loss that can reduce your Capital Gains Tax liability without actually disposing of the asset.
You can make a claim by either:
- Writing directly to your tax office
- Entering the negligible value claim on your Self Assessment tax return
HMRC may refer your claim to the Shares and Assets Valuation team for consideration, so you should be prepared to provide supporting evidence.
Evidence required for company shares
The evidence you need depends on whether the company is in liquidation or receivership.
Companies in liquidation or receivership
You'll need to provide:
- A statement of affairs for the company and any subsidiaries
- A letter from the liquidator or receiver showing whether any return will be made to shareholders
- Details of how the decision was reached (such as a balance sheet showing significantly more debts than assets)
- Evidence that no recovery or rescue of the company is likely (for example, a statement that the company has ceased trading)
Companies not in liquidation or receivership
You must provide full and comprehensive information demonstrating that the shares or securities have become of negligible value. This might include recent accounts, information about trading conditions, or other evidence of the company's financial situation.
The negligible value agreement list
HMRC publishes a list of shares and securities in companies that were previously quoted on the London Stock Exchange and have been accepted as being of negligible value. The current list includes companies accepted up to and including 28 February 2026.
This list can help support your claim, but you still need to submit your own claim to HMRC even if your shares appear on it.
What's not on the list
HMRC does not publish negligible value agreement lists for:
- Unquoted companies
- Companies quoted on the Alternative Investment Market or PLUS Market
- Non-UK companies
Understanding the list
The list is organised alphabetically by company name. For each company, you'll see:
Security: The type of shares or stock (such as ordinary shares or preferred stock)
Effective date: The date from which a negligible value claim on those shares is valid. This may be shown as a specific date or a tax year (for example, "1992 to 1993" or "28 Apr 2003")
Dissolved date: The date the company ceased to legally exist. You cannot make a negligible value claim on or after this date
If you find your shares on the list, this confirms they were quoted on the London Stock Exchange and have been accepted as having negligible value. However, you must make sure you're claiming for the correct security type and that your claim date falls within the valid period.
Important timing considerations
The effective date is crucial—it determines when you can validly claim the loss. If you make a claim for a date before the effective date shown on the list, or after the company has been dissolved, your claim may not be accepted.
You can choose to treat the loss as occurring either:
- On the date the asset actually became of negligible value
- On the date you make the claim
This flexibility can be useful for tax planning, allowing you to use the loss in the most beneficial tax year.
When this might be useful
Negligible value claims are particularly relevant for:
- Shareholders in companies that have failed or are failing but not yet formally wound up
- Investors holding shares in companies that have been struck off or dissolved
- Anyone who owns assets that have become worthless but cannot be sold
By making a negligible value claim, you can recognise the loss for tax purposes without waiting for a formal disposal or winding up. This means you can use the loss to offset gains in the 2025/26 tax year or carry it forward to future years.
Sources
This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.
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