Claiming Capital Loss on unlisted shared against income tax

Hi, I had invested in a start-up which was dissolved in Sep 2022. The shares are unlisted and I wanted to offset the loss against income. When completing the CGT section of my self-assessment, I have entered the loss on the disposal in box 35. Then the system is forcing me to select "YES" to the question "Are you making any claims or elections?", and there's a drop-down list of codes (ESH, GHO, INV, etc.) but it's not clear to me which one is the relevant code for me to use. Could you please provide some help to understand which one is relevant? Thanks

Hi 

You will select NVC - Negligable value claim

Thank you

Thank you. So once I have selected NVC, and I have attached my computation of the loss and the final gazette from Companies House showing the status of the company as dissolved (on 13 Sep 2022), is there any other specific form I need to complete and attach to the tax return? Or do I simply need to state in my computation that I am making an Negligible Value Claim for the entire amount of the calculated loss against my 2022-23 Income?

Having read some additional material (HS286) on the NVC, it seems that a critical requirement is that an NVC claim can only be made when you still own the asset. As the company was dissolved on 13 Sep 22, I don't think I can make an NVC claim now in the 2022/23 SA as I do not own the asset any longer (as the company was dissolved). Is there any other code/option that I should use instead? Best regards

Hi danesi75
There is no code to use if NVC not applicable.
You can only consider share loss relief against general income, but must satisfy the conditions in HS286 or you can claim CG losses, to use in the year of return or carry forward.
Thank you.

Hi danesi75,
There is no code to use if NVC not applicable.
You can only consider share loss relief against general income, but must satisfy the conditions in HS286 or you can claim CG losses, to use in the year of return or carry forward.
Thank you.
 

Hi,

The fact that the business asset is now disolved does not implact your NVC. You have not disposed of the asset. Simply note in the additional information field that the company was disolved on 13 September 2022 and include any ref numbers etc, to support.

Thank you.