UK CGT Bed-and-Breakfast 30-Day Rule Guide 2026/27
UK CGT share matching 2026/27: same-day rule (TCGA s.105), 30-day rule (s.106A), Section 104 pool, bed-and-ISA and bed-and-spouse, crypto, worked example.
Sections 105 (same-day), 106A (30-day) and 104 (share pool) of TCGA 1992 decide which shares a sale is matched with for Capital Gains Tax. This guide covers the matching order, why bed-and-breakfasting no longer works, the bed-and-ISA and bed-and-spouse alternatives, and how the same rules apply to cryptoassets.
Matching hierarchy
| Priority | Rule | Effect |
|---|---|---|
| 1st | Same-day (s.105) | Sale matched against shares bought the same day |
| 2nd | 30-day rule (s.106A) | Sale matched against shares bought in the next 30 days |
| 3rd | Section 104 pool | Sale matched against the pool at average cost |
Rates for 2026/27: 18% on gains within your unused basic-rate band and 24% above it, after the £3,000 annual exempt amount (GOV.UK).
Frequently asked questions
What is the Bed-and-Breakfast 30-day rule?
Bed-and-breakfasting was the practice of selling shares to realise a gain or loss for Capital Gains Tax (CGT) and buying them back the next morning. Section 106A TCGA 1992, introduced in 1998, counters it: if you sell shares and acquire shares of the same class, in the same capacity, within the 30 days after the sale, the sale is matched with the new purchase rather than with your existing Section 104 pool (HMRC CG51560). The effect is usually to shrink or remove the gain or loss you were trying to create. The rule does not apply to an acquisition made while you were not UK resident (acquisitions on or after 22 March 2006).
How do the Section 104 pool, same-day and 30-day rules rank?
Disposals are matched in this order (CG51560): (1) shares acquired on the same day (s.105); (2) shares acquired in the 30 days after the disposal (s.106A); (3) the Section 104 pool at average cost (s.104). Worked example: you hold 1,000 shares at a pool cost of £4 each, sell 500 at £5 and buy 200 back at £5.20 fifteen days later. The 200 re-bought shares are matched first: (£5.00 - £5.20) x 200 = a £40 loss. The other 300 come from the pool: (£5.00 - £4.00) x 300 = a £300 gain. Net gain £260.
Is the bed-and-spouse strategy allowed?
The 30-day rule only matches acquisitions by the same person, so a sale by you followed by a market purchase by your spouse or civil partner is not matched (CG51560). The gain or loss on your sale is yours and is taxed on you; your spouse simply owns new shares at the price they paid. This differs from a transfer between spouses, which is at no gain, no loss: there, you give the shares to your spouse first and they sell, using their own £3,000 annual exempt amount and their own Income Tax band.
Is the bed-and-ISA strategy allowed?
Yes. Selling shares in a general account and buying the same shares inside your ISA is not caught by the 30-day rule, because the ISA Regulations make section 106A and the pooling rules apply separately to shares held as ISA investments (Individual Savings Account Regulations 1998 reg. 34(2)). The sale is matched with your existing pool in the normal way, so any gain is realised and is covered by your £3,000 annual exempt amount or taxed at 18% / 24%. The repurchase uses your ISA subscription allowance for the year. Future gains and dividends inside the ISA are tax-free.
Does the 30-day rule apply to crypto?
Yes. HMRC's Cryptoassets Manual (CRYPTO22200) applies the same-day rule, the 30-day rule and Section 104 pooling to fungible tokens, with a separate pool for each type of token (bitcoin, ether and so on). Selling and re-buying the same token within 30 days is matched under the 30-day rule. Non-fungible tokens are separately identifiable and are not pooled. A swap of one token for another is a disposal of the first token.
What should investors check under the CGT matching rules?
Keep a record of every purchase and sale of each holding so the pool cost can be worked out. Do not re-buy the same shares or tokens within 30 days if you are trying to realise a loss. Consider bed-and-ISA or a sale and re-purchase by your spouse instead. Each person has a £3,000 annual exempt amount for 2026/27. Losses must be claimed within 4 years of the end of the tax year of disposal. If you are registered for Self Assessment, report gains above the exempt amount, or disposals with total proceeds above £50,000 (GOV.UK Capital Gains Tax).