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This doesn't work because it doesn't change the cost basis for your section 104 holding due to the bed and breakfasting rule. You need to sell outside and buy inside an S&S isa to
launder your capital gains this way.
wence-
bed and breakfasting rule
You can sell and wait for 30 days to rebuy, or change the asset, though
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Thanks. I am on the HMRC website and don't get it from reading their guide.
However, looking at your comment, if you bought and resold instantly within 30 days (say in 2024), whenever you eventually close out the position, your original purchase price (say from 2002) prior to bed & breakfasting is the cost for Cgt purposes.I never knew this. Don't think I've ever triggered it but never been asked on a tax return done through accountancy if I did anything within 30 days that I can recall.
frankenbike
bobble
I think people are doing it even with ISAs filled for this year. This is my understanding of people's logic
Person A has £100 outside an ISA, £40 of which is gain. If they sell and rebuy that £100 now instantaneously, they are paying less tax that way when they eventually close out the position (Say at £150 in a further 5 years time).
From Sept** will be paying higher CGT. Definitely on the £150-50, possibly at your marginal tax rate, but you've realised £100-60 of gain at 10% or 20%.
If you did nothing in this tax year, you'd be into higher tax on the whole gain £150-60 at the end
** edit, likely, and will be from April 25