Order of matching for the “bed and breakfasting” CGT rule in the UK

What is the bed and ISA 30 day rule?

The capital gains tax 30 day rule simply states that UK investors cannot use the bed and breakfast share dealing approach outlined above. Instead, investors must wait 30 days before acquiring the exact same share or same class of a specific fund.

What ISA bed and ISA transaction?

A bed and ISA is a pair of deals where an investment is sold in a dealing account and bought in an ISA. The two transactions are carried out together so there is less exposure to market movement.

What is bed and spouse?

Bed and Spouse

This is where the shares are sold by an individual and bought back in the name of their spouse or partner. The disposal of shares crystallises the gain and allows the individual to make use of the CGT allowance.

What is the 30 day rule for shares?

If you wish to repurchase an investment that you have recently sold, over 30 days must elapse between the two transactions in order for you to utilise your CGT exemption or create a loss to offset against other gains realised within the same tax year.

Is bed and breakfasting shares legal?

A bed and breakfast strategy allows investors to minimize the amount of capital gains taxes they must pay. The 30-Day Rule of 1998 banned the practice of “bed and breakfasting,” forcing investors to wait 30 days before being allowed to repurchase the security they had just sold.