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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15944
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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HI, can I "bed and breakfast" shares to optimise my CGT position, Please

Customer Question

HI, can I "bed and breakfast" shares to optimise my CGT position,

Please advise

David
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

If you are asking if you can sell your shares today and buy them back tomorrow to use your CGT exemption and increase your base costs, the answer is no I'm afraid.

Take a look here for information on share identification.

If you are married or in a civil partnership, you could give some shares to your spouse or partner so that they can use their CGT exemption but the share identification rules still apply.

I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

Hi, What I really meant was "Can I seel my shares on 4th April and buy them back on 6th April to take advantage of 2013/2014 CGT allowance? And then hopefully use the 2014/2015 allowance as well"


 


I suspect that the answer may still be no,


 


Kind regards


 


David

Expert:  TonyTax replied 3 years ago.
I'm afraid not. The reason is that you will have bought them back within 30 days of selling them so the two transactions will be matched for CGT purposes. The fact that you have done it in two different tax years makes no difference.