Shares in UK company in administration

[Stitcher]

Hi,
I inheritated some shares in a UK private company in 2018. The company is now in administration (the period was recently extended, so I presume the process is not yet finalised). The shares are worthless now and will represent a capital loss. No one has contacted me since the staff were all let go back in 2024.

Should I expect to be contacted eventually by the administrators to be informed of the status of my shares? I have other shares where there will be a capital gain and I'd like to cash them in when I can declare the capital loss on the worthless shares. This has to be done in the same year I believe.

Does anyone have any knowledge about what happens with shareholders when a UK private company goes into administration?
Thanks

 

[Brendan Burgess]

Hi Stitcher

This is what is known as a negligible value claim for tax purposes.

I made a mistake on this some years ago. I am not a tax specialist so verify the following before acting on it.

Say it was the tax year 2000 and I had made capital gains of €30,000
A company I had shares in went into liquidation so I had losses of €20,000

I did my tax return in 2001 and claimed negligible value. Strictly speaking I should have actually made the claim in the year 2000. Waiting a year was too late but Revenue don't enforce this as far as I remember.

So you have worthless shares now.
Make a negligible value claim in 2026.
You will then have a loss for CGT purposes.
You can use this in 2026 or carry it forward and use it against gains in subsequent years.

 

[Brendan Burgess]

More information here

Key Post - Getting CGT loss relief on worthless shares

Originally posted by usinvestor Earlier this year I sold some shares with a profit of nearly 6000euro. I also have shares in a US company which has filed for Chapter 11 bankruptcy. I have a contract showing the purchase price but no other paperwork since I have not sold these shares. It...

www.askaboutmoney.com

 

[Stitcher]

Thanks Brendan. I didn't realise you could carry the capital loss over from year to year. That takes the presdure off.

 

[Brendan Burgess]

You can carry forward ordinary losses to future years. So if I sell my AIB shares at a loss in 2026 and make a gain on my BoI shares in 2027, I can set the loss from 2026 against the gain in 2027.

Maybe check that the loss created by a negligible value claim can also be carried forward.