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Quoted shares of negligible value and capital loss claim

Quoted shares of negligible value and capital...

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A holding in a quoted co was deemed to be of negiligle value by HMRC on 24 December 2007. There were no gains in 2007/08 and gains in 2008/09 are within exemptions. Are there any time limits in which this loss must be put onto an SA return to avoid foregoing the losses?

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By kenmoody
26th Jun 2009 16:27

No
The loss arises at the time of making the claim, though with a facility to effectively throw the loss back a couple of years if the shares had become of negligible value earlier, by specifying an earlier date in the previous 2 tax years on which the shares were worthless. With quoted shares that in practice means a date after the date given by HMRC. Otherwise you can keep your powder dry until you can use the loss. There used to be something to be said for that due to the interaction of taper relief - let me see if I can remember this - if you had losses b/fwd and gains in excess of the AE with taper relief you may still not have had a taxable gain. But I think you had to use any losses forward to take you to the AE limit so the losses used were wasted as you wouldn't have had a taxable gain after taper anyway. That's not a factor any more of course with a flat rate of 18%.

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By Bolebrook1
28th Jul 2009 15:49

Negligable Value
I fully agree with that answer but can anyone explain the situation regarding Northern Rock shares where the Revenue have considered that the entire loss under the Transfer Order was a disposal for CGT purposes and the shares are of negligible value, but the lastest date for claiming the loss is 31/1/2014, which is not even 6 years from the date on which they were considered valueless.

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