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TonyTax
TonyTax, Tax Consultant
Category: Tax
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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

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

Please advise

David
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.
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Customer: replied 4 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
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.
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