CGT if selling and rebuying shares

[montecristo]

If I sell shares at a profit, and buy new shares in the same company next day, does that profit count for CGT? i.e. I want to create a profit (to offset against a CGT loss), but also want to have the shares.

I think I read that if I sell them at a loss and buy them back the next day, I can't count the loss (there needs to be a gap of 30 days) but I can't find the right search terms for Google.

[xeny]

This is correct. Searching for "cgt 30 day rule" spits out

https://www.gov.uk/government/publications/shares-...

which is explicit.

you could sell and buy in an ISA, at which point the 30 day rule is circumvented. New allowance coming up soon....

edit: can't you carry a CGT loss forward anyway?

https://www.gov.uk/capital-gains-tax/losses

Edited by xeny on Thursday 4th January 13:00

[ellroy]

Also has to be the exact same class of share.

For example, you could sell A class shares at a loss and crystallise that loss if you bought B class shares the next day. The 30 day rule would apply solely to repurchase of A class shares.

[jeff m]

I'm not sure if this helps.
This is the way I handle harvesting a tax loss but staying in that particular game.

I buy the equivalent Dollar amount of my intended sale, wait 30days then sell same amount FIFO

I have my tax loss and a zero cost basis going foreword.

Selling a position at a profit will of course be a taxable event and will not be considered a wash (obviously) although if this was a fund and not an individual share the fund managers may have a frequent trading restriction.

[Panamax]

If you have an "other half" it's quite common to finesse this along the lines,

He sells £20k Tesco and immediately buys £20k Sainsburys.

She sells £20k Sainsburys and immediately buys £20k Tesco.

Zero sum game with both CGT allowances utilised.

Fairly obviously if you don't have an OH you can achieve something similar by selling one investment and immediately buying a different one that's as similar as possible.