Bed and Breakfasting Shares > post April 1998

Bed and Breakfasting Shares > post April 1998: "Bed and Breakfasting Shares - post April 1998
Since 5th April 1998, the Chancellor has introduced new share matching rules which restrict the ability of individuals to 'Bed and Breakfast' their quoted shares, in order to crystallise a gain, to fully utilise their capital gains tax annual exemption, or to realise a loss.

The new rules require a sale of shares, or other security, to be matched with acquisitions in the following order:
same day acquisitions,
acquisitions within the following 30 days,
previous acquisitions, after 5th April 1998, on a last-in-first-out basis,
any shares in 'pool' at 5th April 1998,
any shares held at 5th April 1982,
any shares acquired before 6th April 1965.
'It is the second of the above rules which stops the traditional Bed and Breakfasting transaction from now working, and clients should take care not to be caught out by this rule unknowingly',"