Many investors might be considering realising capital gains on their investments at current rates, in anticipation of a possible increase from 30 October 2024. They may then plan to repurchase those investments after any rate changes to maintain their portfolio balance. However, if the same shares or securities are repurchased within 30 days of the disposal, the shares bought back will be matched with those sold, potentially negating the intended capital gain and the increase in base cost.

For instance, if 1,000 shares in A plc were purchased at £2 per share several years ago and sold on 29 October 2024 for £4.50 per share, this would create an apparent £2,500 capital gain, which may be tax-free if the £3,000 CGT annual exemption for 2024/25 is unused. However, if the same shares in A plc are repurchased on, say, 5 November 2024 for £4.45 per share, there would be a £50 capital loss instead of the expected gain, and the base cost would remain at £2 per share due to the 30-day repurchase rule.

An alternative approach could be for the taxpayer’s spouse to repurchase the