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Where Taxpayers and Advisers Meet

Claiming loss relief

Oli From Reading
Joined:Sun Aug 29, 2021 3:08 pm
Claiming loss relief

Postby Oli From Reading » Sun Nov 21, 2021 12:39 pm

Can anyone clear this up for me... I have a negligible value claim so I've gone through all the HMRC notes on how to claim, but as far as I can see from paperwork point of view, it's the same process as claiming loss relief where it's all loss.

But I've seen a few references hinting that they're different. For instance, someone said to me:

" means you can now claim loss relief (this is only if you haven't done a negligible value claim on these, as you can only do one or the other)."

Am I missing something - is there a significant distinction (benefit) between a partial loss and a complete loss?


Joined:Mon Mar 05, 2018 10:07 pm

Re: Claiming loss relief

Postby Stats » Tue Mar 01, 2022 3:17 pm

For "negligible" read "total". In other words, you can only claim after it is clear there is Nil value. In the event of a partial loss, you would have to make a disposal to a third party to gain loss relief. With shares, beware that once your investee company is dissolved you need to be vigilant as there is an early cut-off date for making a total loss claim, being the tax year in which the company was dissolved

Joined:Sat Feb 01, 2014 3:26 pm

Re: Claiming loss relief

Postby bd6759 » Tue Mar 01, 2022 9:06 pm

For negligible read negligible.

Total loss is covered by 24(1). There would be no point in 24(2) if negligible also meant total.

A negligible value claim is a deemed disposal and reacquisition of the asset. The deemed disposal is what generates the loss.

Having created a loss it then has to be claimed under s16(2A).

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