The Taxation of Chargeable Gains Act 1992
Disposals where assets lost or destroyed, or become of negligible value4
1
Section 24 of the Taxation of Chargeable Gains Act 1992 (disposals where assets lost or destroyed, or become of negligible value)6 is amended as follows.
2
After subsection (1) insert—
1A
A negligible value claim may be made by the owner of an asset (“P”) if condition A or B is met.
1B
Condition A is that the asset has become of negligible value while owned by P.
1C
Condition B is that—
a
the disposal by which P acquired the asset was a no gain/no loss disposal,
b
at the time of that disposal the asset was of negligible value, and
c
between the time when the asset became of negligible value and the disposal by which P acquired it, each other disposal (if any) of the asset was a no gain/no loss disposal.
3
In subsection (2), for “Where the owner of an asset which has become of negligible value makes a claim to that effect:” substitute “Where a negligible value claim is made:”.
4
In subsection (3)—
a
for “subsections (1) and (2) above” substitute “this section”;
b
for “where either of those subsections applies in accordance with this subsection,” substitute “where a building or structure is so regarded,”.
5
After subsection (3) insert—
4
For the purposes of subsection (1C), a no gain/no loss disposal is one which, by virtue of any of the no gain/no loss provisions, neither a gain nor a loss accrues to the person making the disposal.
6
The amendments made by this article have effect on and after 6th April 2009 (and it does not matter whether the conditions for making a negligible value claim were met before or after that date).