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Negligible Value Claim in Taxfiler

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I am trying to enter a Negligible Value Claim in Taxfiler. My client holds shares in NMC Health - the company is in administration, the shares have nil value and have been delisted. The company doesn't appear on HMRC's list of formerly quoted shares which have been officially declared as of negligible value, but the administration happened in February 2020 and it appears that it can take some years before delisted shares make it to the list! My client's shareholding meets the conditions for a negligible value claim.

I am trying to enter the disposal in Taxfiler and struggling to get the software to calculate the correct loss on disposal. I have completed the following fields:

- Disposal date and proceeds (nil)

- Purchase date and cost (say £1,000)

- Reliefs claimed - negligible value claim and value (say £1,000) in Amount Claimed.

The loss auto calculates as £2,000 when it should be £1,000. The software has deducted both the purchase cost (£1,000) and the negligible value claim (£1,000) from the proceeds (nil) to over-state the loss.

I can over-ride the calculated loss but think I must have done something wrong as the calculation should work. The purchase cost and amount of the negligible value claim both seem like reasonable figures to include though!

If anyone can tell me where I am going wrong, that would be appreciated. I will otherwise contact Taxfiler support but was hoping to get this one finished.

Thank you!

 

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By thomas34
01st Aug 2021 13:55

Probably shouldn't answer this as not familiar with Taxfiler. I'm not sure why the software requires an actual value for the negligible value claim. Presumably you've been asked for the particular election that you're claiming (in this case NVC)(box 28 on the return). If you don't put a value in the NVC box I suspect you'll arrive at the correct loss of £1K. If it does and the return passes Taxfiler's validation it's job done. Either way I'd get clarification from TF.

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By sparkler
01st Aug 2021 14:02

Thank you very much - I am sure you are right. I will check with Taxfiler to be certain, but I agree they probably just need the name of the election. Not sure why it requests the value.

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