Bed and breakfasting
Also known as: 30-day rule, B&B rule
A UK matching rule: disposals are matched to reacquisitions of the same token within 30 days, countering loss-harvesting by quick rebuys.
Definition
Bed and breakfasting refers to selling an asset and buying it back to crystallise a loss or reset cost while keeping exposure. The UK counters this with a 30-day rule: a disposal is first matched against same-day acquisitions, then against acquisitions in the following 30 days, before the Section 104 pool. South Africa has no equivalent fixed-day matching rule, but loss claims must be genuine.
Example
A UK investor sells ETH and rebuys it 10 days later. HMRC matches the disposal to that rebuy under the 30-day rule rather than to the pool.
Jurisdiction notes
- United Kingdom: HMRC applies a 30-day matching rule to counter bed-and-breakfasting of crypto tokens.
- South Africa: No fixed-day matching rule applies in South Africa, but a claimed loss must reflect a genuine economic loss.