Commentary

C1.321 Assets becoming of negligible value

Capital gains tax
Capital gains tax | Commentary

C1.321 Assets becoming of negligible value

Capital gains tax | Commentary

C1.321 Assets becoming of negligible value

The owner of an asset may submit a claim to the effect that the asset has become of negligible value. The term 'negligible' is not defined in the legislation, but HMRC takes the view that this means 'worth next to nothing'1.

A negligible value claim can be made where either:

  1.  

    •     the asset has become of negligible value while owned by the claimant, or

  2.  

    •     the disposal by which the claimant acquired the asset was a no gain/no loss disposal at the time of which the asset was of negligible value and, between the time at which the asset became of negligible value and that disposal, any other disposal of the asset was a no gain/no loss disposal2

It was held in PL Drown

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