Negligence value claim against Income Tax

I am currently experiencing significant losses in I value of my assets purchased during the year 2021, I am wondering if there is a chance I can claim a Negligence value claim on those losses against my income tax. I am currently employed so taxes are being done by my employer. I have never filled out any self-assessment forms, therefore I am wondering if there is any easy-to-understand guide on how I can submit the above-mentioned claim. Thank you

Hi,

You can see guidance here:

HS286 Negligible value claims and Income Tax losses on disposals of shares you have subscribed for in qualifying trading companies (2024)

Thank you.

Hi, I have reviewed this document and I will be grateful if you can confirm if I understood it correctly. In order to make negligence value claim I have to calculate the whole asset loss ( assets I am still an owner ) for sake of this example let say capital loss on two assets is: £8000 £3000 Total capital loss must be written in section 37. Total number of relief against your income for the year 23/24 must be written down in section 41. Total number of relief against your income for the year 22/23 must be written down in section 43. In section 54, we have write down company details and calculations. - Company name - Company registration number - Country they reside - Country they pay taxes - Date when the asset became negligent Could you please confirm if that would be correct? Now the question is if the total amount of capital loss £11000 and the total income tax paid during the last two years is £9500, what would be the tax relief as it is not really clear. Would it be the whole £9500 ( income tax paid) and the remaining £1500 will be lost? If the amount of loss on the first asset in year 22/23 is £8000 and income tax paid for that year is only £5000, will the outstanding £3000 pounds be automatically calculated into the following year? Please provide some information and advice as it seems very complex procedure at least at first. Have a great evening Regards

Hi,

The loss can be used in either the year of the loss or the previous year. There can be no partial claims.

The amount of tax paid in each year is not what we look at, its the amount of income in each year. If an individual chooses to carry the loss back to the year prior then the loss must be set off to the fullest extent, for example if the total income in that year is £20000 and the loss is £11000, the whole of the loss must be used and set against the income in that prior year even if it means personal allowances are lost. You cannot chose to split the loss if the income in the year is more than the loss. You can see guidance here:

VCM74020 - Share Loss Relief: individual and corporate claimants: individual claimants: the claims procedure

VCM74030 - Share Loss Relief: individual and corporate claimants: individual claimants: giving relief

Thank you.