Taxation of Chargeable Gains Act 1992 section 24

Disposals where assets lost or destroyed, or become of negligible value

Section 24 deals with the capital gains tax consequences when an asset is lost, destroyed, or becomes worthless, and sets out how a negligible value claim can be made to crystallise a loss.

• The complete loss, destruction or extinction of an asset is treated as a disposal for capital gains purposes, whether or not any compensation is received.
• An owner may make a negligible value claim if the asset became worthless while they owned it, or if they acquired it via a no gain/no loss transfer when it was already worthless.
• A successful negligible value claim treats the owner as having sold and immediately reacquired the asset at its negligible value, and the claim can be backdated within certain time limits.
• Buildings and permanent structures can be treated as separate assets from the underlying land, with special rules applying where structures and buildings allowances are claimed on leasehold interests.