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Bed and breakfast
The practice of selling shares on one day and buying them back on the next. The purpose for UK taxpayers was to crystallise a gain (or loss) in a share which could then be:offset against gains on other shares in the same tax year orused against an annual capital gains tax allowance (£7,700 of tax-free gains in 2002-2003, rising to £7,900 of tax-free gains in 2003-2004)The anti-avoidance provisions of the 1998 Budget effectively ended the practice of bed and breakfasting by making it impossible to get the tax advantage.
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