HMRC: Negligible Value Shares Claim Guidance for CGT Relief

• Taxpayers can make an HMRC negligible value shares claim for assets that have become virtually worthless since their acquisition.
• These claims allow individuals to realize a capital loss, which can be used to reduce their Capital Gains Tax liability.
• Comprehensive evidence, including the date of negligible value and original cost, must be provided to HMRC.
• HMRC publishes a list of shares declared negligible, but this list does not cover unquoted shares or those from dissolved companies.
• Even if shares appear on HMRC's list, a formal claim must still be submitted by the individual taxpayer.

By successfully demonstrating that an asset has become virtually worthless, taxpayers can realize a capital loss, which can then be offset against capital gains, thereby reducing the overall Capital Gains Tax owed.

Individuals seeking to reduce their Capital Gains Tax liability can do so by making an HMRC negligible value shares claim. This mechanism applies to assets, such as shares or securities, that have significantly depreciated in value since their acquisition, becoming worth almost nothing. A fundamental condition for such a claim is that the asset must not have held negligible value at the point of purchase; its worth must have diminished during the period of ownership.

By successfully demonstrating that an asset has become virtually worthless, taxpayers can realize a capital loss. This loss can then be offset against capital gains, thereby reducing the overall Capital Gains Tax owed. The process for initiating an HMRC negligible value shares claim can be completed either by including the details within a Self Assessment tax return or by submitting a direct letter to HMRC. In certain circumstances, the tax office may refer the claim to its specialized Shares and Assets Valuation team for a thorough review.

To substantiate an HMRC negligible value shares claim, taxpayers are required to furnish comprehensive and detailed information. This includes providing robust evidence that clearly demonstrates how the shares or securities have diminished to negligible value. Specific details that must be supplied include the precise date on which the asset is deemed to have become of negligible value, the original cost incurred for acquiring the shares, any proceeds received from their disposal (if applicable), and their current estimated value.

It is crucial to understand that the official HMRC negligible value list does not encompass all types of shares. Specifically, the list is not published for unquoted shares, nor does it include shares that are not traded on the London Stock Exchange. Furthermore, claims cannot be made for shares in companies that have already been dissolved; a negligible value claim is invalid if submitted on or after the company's dissolution date. This distinction is particularly relevant for those holding unquoted shares negligible value, who must rely solely on their own comprehensive evidence.

HMRC maintains a public list of shares and securities from companies that have been officially declared as having negligible value. This resource is a valuable tool for identifying potential UK capital loss shares, providing a degree of certainty regarding the asset's status. The list's validity is periodically updated, with recent extensions including dates up to 31 August 2026, 30 April 2026, 28 February 2026, 31 December 2025, 30 November 2025 (which saw a new company added), 31 October 2025, 30 September 2025, 31 August 2025, 31 July 2025, and 30 June 2025.

Despite a company's shares appearing on this HMRC negligible value list, individuals are still mandated to formally submit their own claim to HMRC. The list serves as an indicator of HMRC's agreement on the negligible value status, often referred to as negligible value agreements HMRC, but does not negate the need for a personal claim. For clarity, a 'security' refers to the ownership interest held by shareholders, typically in the form of publicly traded stock. The 'effective date' specifies the period during which a negligible value claim for a particular security is considered valid, while a 'dissolved date' marks when a company legally ceases to exist, rendering any negligible value claim on or after this date invalid.

This guidance provides the specific process and required information for making negligible value claims to HMRC, enabling lawyers to advise clients on reducing Capital Gains Tax liability from worthless shares and ensuring compliance with updated list validity dates.

Source: Original reporting via GOV.UK guidance