What is a negligible value claim?
06 Nov, 2019
A negligible value claim is a claim made by a taxpayer when an asset they own has become of negligible value, i.e. it is worthless or worth next to nothing. The taxpayer effectively treats the asset as having been disposed of and then immediately reacquired at the negligible value. The asset must still be owned by the person making the claim and must have become of negligible value whilst it was owned.
Making a claim allows the owner of the asset to realise a capital loss in respect of an asset without actually having to dispose of it.