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Posted Thu, 22 Feb 2024 16:53:13 GMT by Andrew Gardner
Hi there, I have a couple of US-listed commercial company shareholdings which now have a negligible value (e.g. 99% loss). Can I please ask: 1. Is it is possible to make a NVC on such a holding? 2. If so, is it necessary for such companies to be dissolved to fulfill the criteria, or can the share value just be reduced to a negligible value? 3. If NVC possible, and claimed within the 23-24 tax year, can this be claimed against income tax for this year? 4. Further, if the value of the losses exceed income tax of this tax year, can they be carried back to previous tax years per HS227 Losses to the previous 3 years? 5. If value is greater than this year and the previous 3 years, can it be carried forward to future income tax years? 6. If not, then can the residual be retained as a capital gains loss for future years? [7. If NVC does not apply and/or you cannot offset against income, I assume you could still dispose of the assets per their sale (realising the negibile value and therefore loss) and use it as a capital loss for future years?] Thanks so much
Posted Fri, 23 Feb 2024 10:59:45 GMT by Andrew Gardner
As a follow-up question to the above, and assuming that (1) & (2) are correct, could this also include such shares that are held within an stocks & shares ISAs? Evidently such shares would not incur CGT within an ISA so could not be counted as a capital loss, but it isn't clear whether you can claim this against previous income if a NVC is successful? Thanks again
Posted Mon, 26 Feb 2024 16:07:38 GMT by HMRC Admin 19

You can see guidance on negligible value claims (NVC) and claiming losses here:

Negligible value claims and agreements

HS227 Losses (2023)

We can only provide general information and guidance in this forum. For an answer to a detailed question of this nature, you would need to contact our Self Assesment team or seek professional advice.

Self Assessment: general enquiries

Thank you.
Posted Mon, 26 Feb 2024 18:52:46 GMT by Andrew Gardner
Hi, I appreciate that perspective but in many ways this is a general enquiry that doesn't have a clear answer within the guidance I have carefully considered. Specifically, can I ask the general questions: Can a non-UK listed commerical shareholding which are now a negligible value be used for a NVC? I will presume from the guidelines that if something is accepted as a NVC it can be claimed against income. If so, if such a shareholding is held within an ISA, is it still possible to claim a NVC and to be claimed against income tax? I can't see any reference to such a scenario within the guidelines Thanks If so,

Name removed admin .
Posted Tue, 27 Feb 2024 09:41:57 GMT by HMRC Admin 8
Shares disposed of within a stocks and shares ISA, are neither subject to capital gains or capital losses.  
This means that if there are losses in your ISA, you cannot claim a tax refund on those losses.  
You can, however, carry the losses forward and use them in a future tax year.  
Where share become negligible value, you would have to submit a claim to HMRC:
 Negligible value claims and agreements
Posted Tue, 27 Feb 2024 09:56:49 GMT by Andrew Gardner
Thanks. And for clarity, for said shares within an ISA, how do you "use" losses in future tax years if they are not subject to capital gains?
Posted Tue, 27 Feb 2024 15:51:46 GMT by HMRC Admin 10
You cannot utilise any losses from shares held in an ISA as these have not been subject to any income tax or capital gains tax.
Posted Tue, 27 Feb 2024 18:31:15 GMT by Andrew Gardner
Thanks, I did think the previous admin comment was incorrect. Can I just clarify, though, in principle, can a non-UK listed shareholding be eligible for a NVC? And secondly, what is the number of retrospective years an income tax discount can be applied to? HS227 referenced above suggests four years: the year of the claim... "and in the 3 prior years" vs. other documents on NVC (HS286) say that it can be backdated up to two tax years, inclusive of the year you claim it. Which is it?
Posted Wed, 28 Feb 2024 09:06:02 GMT by HMRC Admin 19

You can see additional guidance here:

HS286 Negligible value claims and Income Tax losses on disposals of shares you have subscribed for in qualifying trading companies (2023)

For shares in an ISA, as these are not taxable and no Capital Gains Tax is due, you cannot then claim capital losses.

Thank you.
Posted Thu, 29 Feb 2024 13:27:20 GMT by HMRC Admin 25
Hi Andrew Gardner
HS227 losses are significantly different to Negligible Value Claims.
Please refer to for foreign losses. 
RDRM32060 - Remittance Basis: Accessing the remittance basis: Claiming the remittance basis: Claiming the remittance basis - foreign chargeable gains loss election
Thank you. 
Posted Thu, 29 Feb 2024 18:25:22 GMT by Andrew Gardner
Thank you. Things are becoming clearer now. I have reviewed RDRM32060. It states "losses arising on the disposal of a foreign situs asset will be allowable losses if that individual is deemed domiciled in the UK for the year". Therefore, for the sake of absolute clarity, this suggests that a foreign disposed share asset from a UK domiciled individual, and deemed to pay tax on that asset in the UK, would not be excluded for consideration as competent NVC, as long as they meet the other criteria. And therefore, if deemed a competent NVC, could be claimed against income as per HS286. Is this correct?
Posted Fri, 01 Mar 2024 15:10:28 GMT by HMRC Admin 25
Hi Andrew Gardner,
Negligible Value and Share Loss Relief are separate claims and eligibility for one does not guarantee eligibility for the other.
Whilst you may be entitled to make a claim to negligible value in these circumstances, this will only create a capital loss.
Your capital loss can then be set against capital gains in the same year or future years.
Share loss relief is the relief that allows you to set the gain against your general income.
The requirements for this relief are shown in HS286.
Thank you. 


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