Does the 30 day rule (bed & breakfast) apply to CFDs in UK?

[mickael28]

Hi,

I've been reading about the 30 day rule in the UK and all the examples I've been able to find explain that you could sell your shares and then invest on its CFD equivalent to keep you exposed in the same security for that period of time, until you're then allow to buy back the original shares.

My doubt is, does this 30 day rule apply at all to CFDs? for example, if I've got a CFD losing position that I'd like to crystilize in order to offset some CGT tax, can I just sell the CFD and then buy it back (either straight away or next day)?

Or would this rule be triggered in this case and then no tax benefit would occur?

Many thanks...

 

[f2calv]

You can carry CGT losses into future years, so I think it doesn't make that much difference at which point/in which year you crystallise any losses... But I'm no tax expert so let us know what you find out!

 

[malaguti]

You can carry CGT losses into future years, so I think it doesn't make that much difference at which point/in which year you crystallise any losses... But I'm no tax expert so let us know what you find out!

Hi mate, even with CGT and carrying forward losses, the bed and breakfast rule applies.
as to whether it applied to CFDs again the answer is yes. Its classified as a contract, in the same way that shares bought and sold are.
This is of course more to the OP but do be wary if you think of selling your shares and buying em back again the next day