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Posted Fri, 10 Mar 2023 14:57:09 GMT by mutmee
Hi, I would like to know: 1. Bed and breakfast rule. Transactions for example: Buy 100 ABC shares on 1 Mar Buy 100 ABC shares on 2 Mar Sell 200 ABC shares on 2 Mar Buy 100 ABC shares on 3 Mar Sell 100 ABC shares on 3 Mar Buy 100 ABC shares on 6 Mar For the sell 200 ABC shares on 2 Mar, shall it be set off the purchase against (1) 100 shares on 2 Mar (same day) and 100 shares on 6 Mar (bed and breakfast)? Or (2) 100 shares on 2 Mar (same day) and 100 shares on 3 Mar (bed and breakfast)? If scenario (1) is correct, is it because same day "buy and sell" on 3 Mar is always set off against each other first? 2. CGT computation sheet Can I group all the disposals of the same US share (Eg. META) on the same day as "a single disposal" and mark in the excel computation spreadsheet and compute the gain/ loss as "single entry"? So which means even if I have sold a few times of same share with different share price every day in a month, there will only be approximate 20-23 disposable transactions listed in the spreadsheet as supporting document for the CGT. Thanks!
Posted Fri, 10 Mar 2023 19:22:03 GMT by Damion2 Yates states the ordering starting with: disposals must be identified in the following order: Against acquisitions on the same day, TCGA92/S105(1)(b), see CG50822. This is known as the “same day rule”. The the 30day etc. So it's scenario (1) It might be sensible to use a separate capital gains calculator which can output a nice PDF, it's not *required* that you use the computation sheet, especially if there are dozens of entries. Most will also have the formulas internally obeying the correct rules
Posted Fri, 10 Mar 2023 21:49:20 GMT by js2
My layman view.... The CGT manual describes both the same day matching rules, and 30-day bed-and-breakfast matching rules. It says that the same day rule takes precedence over the 30 day rule. So for Q1 go with your option 1.
Posted Fri, 10 Mar 2023 21:52:30 GMT by js2
For Q2, the manual says "All shares of the same class in the same company disposed of by the same person on the same day and in the same capacity are also treated as though they were disposed of by a single transaction, TCGA92/S105 (1)(a)."
Posted Thu, 16 Mar 2023 12:26:13 GMT by HMRC Admin 20
Hi mutmee,

Firstly, we cannot comment on any scenarios, real or imagined.  
The date of disposal/acquisition is a matter of fact.
The same day rule applies to shares bought and sold on the same day i.e. with the same date of disposal/acquisition not to a 24 hour period.
Therefore if the old shares were sold on 3 March but the new shares were not acquired until 4 March, they would not be deemed as happening on the same day even if they did happen within a 24 hr period.  
S104 holdings consist of a a single pool of expenditure ususally representing the actual cost of shares.  
Further guidance on bed and breakfast rules, as well as S104 holdings can be found at
(HS284 Shares and Capital Gains Tax (2022)).

Thank you.

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