When is a share nil value for CGT.

[88V8]

Carillion. It seemed such a good idea, once.

So I had these worthless shares. They went bust on January 15th. I included that in my CGT computation for 17/18, no tax due, and I carried forward some loss.

Later, I receive a Corporate Action Notice stating that the Revenue has declared the shares of Nil Value on the 10th April.
Hmmm.

Does this mean that they will disallow my loss for 17/18, thereby exposing me to tax?

V8

[Charlottesquare]

https://www.gov.uk/hmrc-internal-manual ... al/cg13140

You may find this useful, imho a claim ahead of HMRC's publication is valid but not something I have ever had to do in real life.

See guidance to HMRC staff in the internal manual;

" If you receive a negligible value claim in respect of quoted shares that:

are not listed as being of negligible value in Interactive Data, or
are claimed to have been of negligible value at a date earlier than that shown in Interactive Data,
you should send a form CG29 to Shares and Assets Valuation, see CG59517."

[Charlottesquare]

Carillion plc All 15 Jan 2018 (is effective date per list)

https://www.gov.uk/guidance/negligible- ... reements#c

See also PWC.

https://www.pwc.co.uk/services/business ... lders.html

"On 10 April 2018, HM Treasury confirmed that HMRC has accepted shares in Carillion Plc as having negligible value with effect from 15 January 2018, for the purposes of a claim under TCGA 1992, s 24(2). A copy of the announcement can be found here. Please also refer to the following HMRC website regarding how to make a negligible value claim:"

[PinkDalek]

… So I had these worthless shares. They went bust on January 15th. I included that in my CGT computation for 17/18, no tax due, and I carried forward some loss. ...

What precise wording did you include on your "CGT computation for 17/18"?

Then study this https://www.gov.uk/government/publicati ... nt-he/xxxx

Which includes but is not limited to 'You can provide details of your negligible value claim in box 54 (Any other information) on page CG 4 of the Capital Gains Tax summary pages or in your computations included with your tax return.'

Also see this post on this board, conveniently entitled:

Carillion now on HMRC's negligible value list
viewtopic.php?f=49&t=11205

[88V8]

Aha, thankyou all.

Just finished my paper tax form - I used the online form once, that was quite enough - claimed part of the loss and carried forward the balance.
It suited me to claim part of the loss this year, although I have other losses they are shares I don't wish to sell at this time as I live in hope that they may redeem themselves.

I don't actually complete the CGT pages. I may have done years ago, if so it was more than six years and I wouldn't know about that as six years - plus the current year, is as much copy as I keep. I send a computation referring to the share, number, purchase & sale date(s), gross cost, net proceeds, sum. At the foot of this year's computation I made a note that Carillion is of negligible value as of 15 Jan and that I would be carrying forward a loss of £xxxx.
The computation has become abbreviated over the years. I used to itemise each sale, and spell out the share name in full. Nowadays just the code and the sum.

Now HMRC could send it back and require that I complete this form n that, but I expect they have better things to do, at least I hope so.

Regrettably, Carillion was not the first wipe-out. Woolworths, Vanco, no doubt others that time has thankfully erased from recall and more recently IFL (International Ferro Metal), a rump of a past enthusiasm for mining. The worst was in 1992 after the IRA inadvertently blew up a Speyhawk contract site with their St Mary Axe bomb. I'd sunk over two years' net salary into Speyhawk so it was painful, the more so as some of it was OH's net salary. Compared to that, Carillion was indeed pretty negligible, although it irritates that a portion was sitting in my ISA.

V8