Commentary

C1.506 CGT losses—Assets becoming of negligible value

Capital gains tax
Capital gains tax | Commentary

C1.506 CGT losses—Assets becoming of negligible value

Capital gains tax | Commentary

C1.506 CGT losses—Assets becoming of negligible value

If the value of an asset has become negligible, the owner may make a claim to that effect, whereupon there is deemed to be a disposal and an immediate reacquisition of the asset by the owner at the value stated in the claim1 (see C1.321). The effect of a claim is to give rise to a loss, because the negligible value on the notional disposal is compared with the acquisition price paid originally by its owner for the asset2. After such a disposal, the new base cost in the asset becomes the 'negligible'

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