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TonyTax
TonyTax, Tax Consultant
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I have invested in shares since 1997 and few of these companies

Resolved Question:

I have invested in shares since 1997 and few of these companies have been liquidated.Due to no prior knowledge about the negligible value claim I have not made any claim or tax rebate. Is there any way I could claim some of these losses?
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

Hi.

 

Are you referring to shareholdings in publicly quoted companies that you bought through a recognised stock exchange or shareholdings you subscribed for? Do you complete annual tax returns?

 

 

Customer: replied 3 years ago.

yes. some of the companies have been put on the negligible claim list and have been dissolved as well by hmrc. I did not claim as did not have the knowledge then. Is there any way to claim these back?.


 


 

Expert:  TonyTax replied 3 years ago.

Thanks.

 

Leave this with me while I draft my answer.

Customer: replied 3 years ago.
Ok
Customer: replied 3 years ago.

ok

Expert:  TonyTax replied 3 years ago.

Hi again.

 

You should refer to the HMRC helpsheet HS286 here, the notes here and the HMRC negligible value agreements list here. Whether you can make a claim for a capital loss depends on when that loss was incurred.

 

If you still own shares that have become of negligible value and the company has not been dissolved and HMRC have not already given a date for the negligible value status to be effective from, then you can make a claim for negligible value status to apply for the tax year in which you make the claim or either of the two previous tax years so long as the shares were of negligible value in whichever of those two tax years you make the claim for. See pages 1 and 2 of HS286.

 

If the company has been dissolved, then you no longer own the shares and the date of dissolution of the company is the effective capital loss date unless you have made a claim before that date.

 

In some circumstances, the capital losses can be offset against income or gains. HS286 has more information on this.

 

For losses incurred from 1996/97 to 2010/11 inclusive, you have four years from the end of the tax year for which you wish to claim the loss if you complete or completed self-assessment tax returns for those years in which the losses were incurred. If you don't complete or didn't complete self-assessment tax returns for the years in which the losses were incurred, you have five years from the 31 January following the end of the relevant tax year to make a claim by letter to HMRC.

 

For losses incurred in 2011/12 et seq, you have four years from the end of the tax year in which the loss was incurred.

 

If losses are not claimed within the time limits you lose the right to use them I'm afraid.

 

I hope this helps but let me know if you have any further questions.

Customer: replied 3 years ago.
I have seen these on the HMRC website . just give you names of these companies and please let me know from this list if I could claim anything.
The companies are calluna, vocalis, entertainment rights, provalis, recently hiwave technology has gone into administration.
Klein group and is inter securities GmbH had also sold some shares and have disappeared since. Can I lodge complaints through fsa or Berlin stock exchange as one or two of the companies are still in business in the USA but I do not have the certificates ( but have contract notes and other documents to support my ownership.)
Expert:  TonyTax replied 3 years ago.
Let me take a look at those companies.
Expert:  TonyTax replied 3 years ago.

Hi again.

 

Calluna has a negligible value date of 19 January 2000. It was dissolved on 23 September 2005. You are out of time to make a claim I'm afraid but I'd be inclined to write to HMRC to make a claim in any event.

 

Vocalis has a negligible value date of 11 August 2004. It was dissolved on 7 February 2006. You are out of time to make a claim I'm afraid but I'd be inclined to write to HMRC to make a claim in any event. I've seen them slip throught the net unnoticed.

 

Entertainment Rights has a negligible value date of 1 April 2009. You have until 31 January 2015 to make a claim for 2008/09 unless you completed a self-assessment tax return for that year in which case the claim window ended on 5 April 2013.

 

I cannot see Provalis or Hi Wave Technology on the HMRC list I'm afraid. Write to the tax office and make a claim for the losses or do it via your tax return. The claims may or may not be accepted once the tax office have looked into the companies.

 

As far as the German companies are concerned, I cannot help you with these I'm afraid. You could make the loss claim as with the other two and wait to see how HMRC deal with it. It would be worth writing to the Berlin stock exchange for further information. I'm not sure the FSA will get involved unless they were quoted in the UK.

 

Customer: replied 3 years ago.
Entertainment rights , dissolved date not shown yet. Does that mean I can still make a claim . I have submitted my tax return every year since 1992. Does that mean I can't claim against entertainment right. How can I claim for capital loss against future gains?
Expert:  TonyTax replied 3 years ago.

You should have claimed the losses through your tax returns as and when the shares ceased to have any value, thereby putting them on record with HMRC. They would then be available for use in the future.

 

I have just found some HMRC notes here which may help you. They say there is no time limit to make a claim for losses on shares which have become of negligible value so if I were you, I'd write to the tax office and make a claim for any you have not claimed for already. I have to say that I know of only one other tax claim that one can make without time limit and HMRC have refused several NV claims I have made for clients on the basis that they were late. The notes seem to give the lie to that. I guess that's why HMRC list the companies.

Customer: replied 3 years ago.
R u based in the uk?. Do you have a company and help submit these claims?
Expert:  TonyTax replied 3 years ago.

I am in the UK but I'm not allowed to procure private work from this site I'm afraid.

 

All you need to do is to write to the tax office saying that you wish to lodge loss claims for the companies concerned, some of which have already been granted negligible value status. You should tell HMRC how much each loss is and when they were incurred. Give as much detail about the companies that have yet to be granted NV status as you can. You can use form CG34 if you wish.

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