Glossary · UK
What is Wash Sale (UK / Bed and Breakfasting)?
Informal term for selling and repurchasing the same asset to crystallise a CGT loss — restricted in the UK.
Full Definition
A wash sale is the US name for selling an asset at a loss and quickly repurchasing it to keep economic exposure while booking the tax loss. The UK has no concept of "wash sale" by name, but achieves the same restriction through the 30-day Bed and Breakfasting rule: any repurchase of identical shares within 30 days of a sale is matched against that sale, so no usable loss is created. Permitted workarounds include waiting 30+ days, repurchasing inside an ISA (Bed and ISA), buying a different but similar fund, or having a spouse buy. The Annual Exempt Amount in 2025/26 is just £3,000, so harvesting losses against future gains has become more valuable.