‘Bed and breakfasting’ was the pre-1998 practice of selling shares and repurchasing them the following day. This technique can still be used in a modified form to achieve capital gains tax (CGT) savings for current or future tax years using:

1. •

   a spouse / civil partner

2. •

   a self-invested pension plan (SIPP), or

3. •

   an individual savings account (ISA)

There are, however, anti-avoidance rules that need to be considered, as discussed below.

When considering planning of the kind discussed below, the usual health warning applies: advisers cannot give investment advice unless they are authorised to do so. See the Regulated investment advice guidance note. Advisers can tell the individual about the tax implications of utilising the annual exemption by ‘bed and breakfast’ type arrangements but must not recommend disposals of specific investments.

For a checklist summarising year end planning for CGT, see the Checklist ― year end planning for capital gains tax for individuals.