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Shares Bed & Breakfast

  • 28-04-2015 9:46am
    #1
    swanvill
    Registered Users, Registered Users 2 Posts: 276 ✭✭


    Hi,

    In the past you used to be able to sell your shares on Thursday & buy the same value back on Friday morning, thus recognising any capital gains or losses for a year.

    Can you still do that or as I heard from someone today (not a tax person) that you now have to wait 30 days before buying them back?

    Thanks in advance for your answers.


Comments

  • #2
    dogsears
    Registered Users, Registered Users 2 Posts: 535 ✭✭✭dogsears


    swanvill wrote: »
    Hi,

    In the past you used to be able to sell your shares on Thursday & buy the same value back on Friday morning, thus recognising any capital gains or losses for a year.

    Can you still do that or as I heard from someone today (not a tax person) that you now have to wait 30 days before buying them back?

    Thanks in advance for your answers.

    A gain will still be recognised and taxed if you sell on Thursday and buy back on Friday, but if a loss arises this can only be set off against a gain arising on a later sale of the shares reacquired.

    Not sure about when you say it was possible in the past - the legislation that governs this has been in place since the introduction of CGT in 1975 as far as I know.


  • #3
    swanvill
    Registered Users, Registered Users 2 Posts: 276 ✭✭swanvill


    Thanks I must have remembered it wrong.


  • #4
    macmontyson
    Registered Users, Registered Users 2 Posts: 6 ✭macmontyson


    The purpose of the bed and breakfast rules is to prevent people from crystalising a capital loss by selling shares (at a loss) and then buying them back the following day.


  • #5
    howsshenow
    Registered Users, Registered Users 2 Posts: 138 ✭✭howsshenow


    Hi, I am wondering if it you make a loss on a part sale of the B&B shares years later, is it possible to use this additional loss to increase your ringfenced accumulated CGT losses for that specific share?
    The PLC in question sold a royalty interest and was given shares in another PLC.. other PLC then had Mgt buyout and I got cash.
    When I apportion out part of original purchase costs for this transaction I make a loss.
    My question if anyone can please help is.. Can I add these new losses to the remaining ringfenced losses to use against future profits on disposal of remaining shares in said Company?
    Thanks in anticipation..


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