CGT on shares sold and bought back on same day

[eggsnbacon]

I would be very grateful if someone could tell me how CGT is calculated in the following scenario.
I invest £20,000 in shares of company ABC. 6 months later I sell those shares for £40,000, and buy them back on the same day (or within 30 days) for £35,000. Is CGT payable on the profit of £20,000 (£40,000 - £20,000), or on £5,000 (£40,000 - £35,000).
Thanks very much.

[bd6759]

www.cgtcalculator.com


The answer is £5000.

The base cost of your pool after these transactions remains at £20,000.

[AGoodman]

Caveat: If either transaction was with a connected party or at an undervalue, it would be deemed to have taken place at market value.

This means that if the value of the shares did not actually change by £5k between the sale and then purchase shortly thereafter, you may not have made a gain.

[eggsnbacon]

Thanks very much.