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bigduckontax, Accountant
Category: Tax
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What relief is available that become negligible in value,

Customer Question

What relief is available for shares that become negligible in value, but the entity is registered in a foreign country?
The shares are owned by a UK company in a Malaysian Holding company which held shares in a trading subsidiary in Zambia (mining and metals business). This failed and went into receivership and the business assets were sold and there was no dividend.
The UK company also made loans directly to the Zambian company (a plc), again this money is not recoverable. Is there any relief due for this?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Shares being of negligible value are usually declared by the stock exchange on which they are traded. In that event they provide a capital loss for Capital Gains Tax (CGT) for individuals or a trading loss for a company as companies are not subject to the CGT regime. The losses made on loans not repaid on liquidation are similarly dealt with.

I do hope that you have found my reply of assistance.