benefit from a short break

Prior to 1998, it was common practice for expatriates to sell and repurchase shareholdings before they returned to the UK, but this strategy was stopped by a change in the law. Now, however, it appears that this strategy will work again. 'Bed and breakfasting', as it was known, was a popular strategy for mitigating capital gains tax (CGT) on holdings in shares and mutual funds in the UK. UK residents have an annual CGT exemption that currently stands at £9,200, which means they can realise capital gains up to that level without incurring CGT. So it used to be common practice to sell your ...