Bed and Breakfasting rule. Do you understand?

cheerfulcat

Hi, mrposhman

Ok I thought I got this rule (this is my first year of stating CGT) but you've just confused me. The way that I read it was if you sell and then buy the same share back within a 30 day period these will be caught under "bed and breakfasting" but if you then go over the 30 day period then the average of all your shares is taken as the price per share? You seem to be suggesting that the first set of shares you bought have to be used for CGT first though this isn't what I understood from hmrc.gov.uk.

Didn't mean to confuse! In my defense, I did say

It's the purchase price, not the sale proceeds, which will be affected by the 30-day rule.

As far as I can see, your transactions come outside of the B&B rules.

mrposhman

cheerfulcat wrote: »

Hi, mrposhman



Didn't mean to confuse! In my defense, I did say

As far as I can see, your transactions come outside of the B&B rules.

I buy 5000 shares at £1. 15 days later I then sell 2500 of these for £1.25.

25 days after this I then buy the same share back and buy another 2000 shares for £1.

Shouldn't this bit be based on the B&B rules?