Bed & Breakfast like this allowed or not?
Discussion
In general the B&B rules say if you sell a fund or security you can't buy the same thing back within 30 days or any gain may not be eligable for CGT relief calculations. Of course you can Bed & ISA, but that's not the question here. However if I had two stocks in a GIA & sell, say £10,000 of Shell & £9,000 of SSE can I then buy £10,000 of SSE & £9k of Shell? I'm not recycling the same money, the £10k I got from selling Shell is proveably used for buying £10k of SSE & vice versa.
Is this a clever wheeze or likely to get me into trouble?
Is this a clever wheeze or likely to get me into trouble?
honest_delboy said:
In a slightly different vein, if i sell £10000 of Persimmon from my nominee account today and transfer to a 23/24 ISA then buy back the shares that's fine ? Like a manual bed & ISA unless i'm misunderstanding something?
Yes - it's called Bed & ISA & is perfectly OK. You can do anything you like within an ISA, it's in a GIA (roughly speaking not SIPPs or ISAs) where the restrictions lie. Mr Pointy said:
In general the B&B rules say if you sell a fund or security you can't buy the same thing back within 30 days or any gain may not be eligable for CGT relief calculations. Of course you can Bed & ISA, but that's not the question here. However if I had two stocks in a GIA & sell, say £10,000 of Shell & £9,000 of SSE can I then buy £10,000 of SSE & £9k of Shell? I'm not recycling the same money, the £10k I got from selling Shell is proveably used for buying £10k of SSE & vice versa.
Is this a clever wheeze or likely to get me into trouble?
No. Is this a clever wheeze or likely to get me into trouble?
Unless using an ISA there are/were only two practical ways to bed and breakfast.
The cheapest is to simply instruct the broker to cross the positions at mid and in reduced comms over to your wife. Ie you're selling and she happens to be buying the exact same amount of stock so you cross between each other.
If you are unable to procure a wife for this purpose then you cross the physical into a spreadbet and hold for 30 days before crossing back into physical. This mechanism means that you sell the physical and crystallise the gain/loss but maintain the same market exposure via a tax free spreadbet.
Weirdly, while either are desperately simple the retail broking market has lost a lot of its understanding of these basic actions.
DonkeyApple said:
No.
Unless using an ISA there are/were only two practical ways to bed and breakfast.
The cheapest is to simply instruct the broker to cross the positions at mid and in reduced comms over to your wife. Ie you're selling and she happens to be buying the exact same amount of stock so you cross between each other.
If you are unable to procure a wife for this purpose then you cross the physical into a spreadbet and hold for 30 days before crossing back into physical. This mechanism means that you sell the physical and crystallise the gain/loss but maintain the same market exposure via a tax free spreadbet.
Weirdly, while either are desperately simple the retail broking market has lost a lot of its understanding of these basic actions.
Thanks. I fear purchasing a wife will more than offset the CGT saving even in the short run, let alone the long one. I'll just have to look at other stocks - Shell was a legacy of the Briish Gas public sell off (I think) so you can see there wasn't much in-depth planning associated with the aquisition.Unless using an ISA there are/were only two practical ways to bed and breakfast.
The cheapest is to simply instruct the broker to cross the positions at mid and in reduced comms over to your wife. Ie you're selling and she happens to be buying the exact same amount of stock so you cross between each other.
If you are unable to procure a wife for this purpose then you cross the physical into a spreadbet and hold for 30 days before crossing back into physical. This mechanism means that you sell the physical and crystallise the gain/loss but maintain the same market exposure via a tax free spreadbet.
Weirdly, while either are desperately simple the retail broking market has lost a lot of its understanding of these basic actions.
Mr Pointy said:
Thanks. I fear purchasing a wife will more than offset the CGT saving even in the short run, let alone the long one. I'll just have to look at other stocks - Shell was a legacy of the Briish Gas public sell off (I think) so you can see there wasn't much in-depth planning associated with the aquisition.
Try bp…..Gassing Station | Finance | Top of Page | What's New | My Stuff