Negligible value claims
You'll learn what a negligible value claim is and how to use it to crystallise a capital loss on worthless assets. This technique applies to situations where an asset (like a crashed share) has become so worthless that you can't sell it on the market, preventing you from realising a loss against your gains.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Negligible value claims explained
- 0:09 When assets become worthless and unsellable
- 0:32 Crystallising capital losses through deemed disposal
- 1:11 Claim timing and backdating rules
- 1:40 Tracking reacquisition cost for future sales
About this lesson
The video explains how to treat the asset as deemed disposed and re-acquired at negligible value, how to backdate claims by up to two years, and why tracking the low reacquisition cost matters for future disposals. This is essential knowledge for the Taxation paper, where negligible value claims frequently appear in exam scenarios involving capital gains and loss relief strategies.
Duration: 2m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the Advanced Taxation course
All 365 video lessons, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in