Bed & Spouse Strategy:
Reset Your Capital Gains

You can't sell shares and buy them back immediately to use your allowance. But your spouse can.

The Problem: "Bed and Breakfasting"

HMRC has a rule to stop you selling shares to realise a gain (using your £3,000 annual allowance) and buying them back straight away. This is known as the "Bed and Breakfasting" rule. If you buy back within 30 days, the sale is matched with the new purchase, and the gain is ignored.

The Solution: "Bed and Spouse"

The 30-day rule applies to you, not your spouse.

How it works:

  1. You sell your shares to realise a profit up to your £3,000 allowance.
  2. Your spouse immediately buys the same shares in their own account (or ISA).
  3. Result: The family still owns the shares, but you have "banked" the tax-free gain and reset the cost basis for future growth.

Important Considerations

  • •Transaction Costs: Remember to factor in dealing fees and Stamp Duty (0.5%) on the repurchase.
  • •ISA Wrapper: Even better, have your spouse buy the shares inside their ISA ("Bed and ISA") to protect all future growth from tax forever.