Hi
I would be grateful for help regarding CGT, the bed and breakfasting rules and when tax becomes payable.
For example: (Ignoring expenses to keep it simpler)
On 10 April 2020 I buy 1,000 shares at £10 each in company "Big Oil" for £10,000.
On 10 June 2020 I sell my 1,000 Big Oil shares for £15 each for £15,000.
On 20 June 2020 I buy 1,000 Big Oil shares for £12.50 each for £12,500.
As I understand the B&B rules, this means that my gain on 10 June did not crystallise because I bought the shares again within 30 days. So, assuming there is no further sale in the 20/21 tax year, am I right in thinking that there is no countable gain on which tax is due in relation to these transactions for 20/21 and that any CGT liability will only fall due in the event of a later chargeable sale which results in an overall gain?
My supplementary query is could one keep doing this? So;
On 10 June 2021 I sell my 1,000 Big Oil shares for £15 each for £15,000
On 20 June 2021 I buy 1,000 Big Oil shares for £12.50 each for £12,000
Assuming there is no further sale of the shares during the 21/22 tax year does this mean that again no gain has crystallised so that there would be no countable gain for 21/22 in which CGT could be due in respect of the Big Oil transactions?
I appreciate that the gains in question would be less than the annual allowance but I am just trying to understand if the actual need to count gains towards overall annual chargeable CGT in relation to these specific transactions can be suspended to a later tax year by re-buying sold shares within 30 days.
I hope the question makes sense.
Many thanks
Jim
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