Commentary

C2.807 Shares becoming of negligible value

Capital gains tax
Capital gains tax | Commentary

C2.807 Shares becoming of negligible value

Capital gains tax | Commentary

C2.807 Shares becoming of negligible value

Where shares become of negligible value, they are treated, on a claim by the shareholder, as having been disposed of and immediately reacquired by the shareholder at their then market value1. Such a claim is not allowed where the taxpayer acquired shares at negligible value as the shares did not become of negligible value2.

The word 'negligible' is viewed in percentage terms of the nominal value of each share; 'negligible' is not defined in the Act but, as small is as a rough guide taken as 5%3, HMRC consider that negligible should be considerably less,

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