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Negligible value assets

Hi

I understand that where an assets has become worthless the buyer can claim loss relief by having sold and immediately required at market value (s 24(2) TCGA 1992) however i have had no experience in doing this claim.

I have been on the HMRC site to look at the list of quoted shares that they have http://www.hmrc.gov.uk/cgt/negvalist.htm and the company that i am interested in is not on there, the company is the well known enron.

A client of mine has a high number of enron shares and wishes to make a negligible value claim.

I have contacted HMRC and they have advised that i can either do this on the Self Assessment return or prior to this filling out a CG34 Form, by filling out the form they will provide if it is a negligible value claim and the supposed amount.

Has anyone had any experience they could offer me

If he makes a claim in the 2011/12 tax year will the loss carry forward forever or is there a time limit (if there is a time limit, it may be worth waiting a few years until he can relieve the loss against an expected gain in the future)

Any guidance on this would be very much appreciated.

Kind Regards

Andrea

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By pawncob
02nd May 2012 22:53

Aren't you out of time? When was Enron?

http://www.hmrc.gov.uk/helpsheets/hs286.pdf 

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03rd May 2012 10:15

I think it was around 2003, however i was under the impression that as long as you still owned them, you could make a negligible claim, is this still the case?

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By pawncob
03rd May 2012 11:11

Previously on accountingweb

This is what we decided last time.

http://www.taxationweb.co.uk/forum/what-s-the-limit-t36439-10.html?hilit=negligible%20value%20claim 

 

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04th May 2012 15:59

i can't get into the link as it says that i need to be signed in but i do not have a password!

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By pawncob
04th May 2012 17:45

You'll have to register. (It's free)

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