Glossary · UK
What is Bed and Breakfasting (CGT)?
Old tactic of selling and rebuying the same share to reset its base cost — blocked by HMRC's 30-day rule.
Full Definition
Bed and breakfasting once meant selling a share at the close of business and rebuying it at next morning's open to use the CGT annual exemption while keeping the position. Since 1998 HMRC's share matching rules block this: any repurchase of the same share within 30 days is matched against the sale, so no gain or loss is realised. To get around the rule investors can use Bed and ISA, Bed and SIPP, Bed and Spouse (sell, partner buys), or rebuy a similar but not identical fund. Still relevant to know because the 30-day rule catches accidental wash sales as well as deliberate ones.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.