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Share loss relief denied as the shares were already of negligible value when allotted

By Mark McLaughlin, June 2024

A claim for income tax loss relief in respect of shares following a negligible value claim was refused, as the shares were already of negligible value when allotted to the taxpayer, so they had not ‘become’ of negligible value while owned by her.  

Summary 

A claim for income tax loss relief in respect of shares following a negligible value claim was refused, as the shares were already of negligible value when allotted to the taxpayer, so they had not ‘become’ of negligible value while owned by her. 

Background 

In January 2018, the appellant submitted an amended self-assessment return for the tax year 2016/17, which included a claim for income tax loss relief of £50,000 arising from a negligible value claim for 2017/18. The appellant’s tax return for 2017/18 was submitted in August 2018, which included the negligible value claim arising

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