Taxation (UK) · Gains and losses on the disposal of shares and securities

Share Matching Rules for Individuals in TX-UK

Updated 11 October 2026 · Fact-checked

Share matching rules decide which shares an individual is treated as selling when they hold shares bought at different times. Match the disposal first with shares bought on the same day, then with shares bought in the following 30 days (earliest first), then with the share pool.

Understand Share Matching Rules for Individuals

When you sell part of a holding in the same company, you cannot point to the exact shares sold. All shares of the same class in the same company are identical. So tax law gives fixed rules to decide which acquisition cost is set against the sale proceeds.

For an individual, the disposal is matched in a set order. First, against shares acquired on the same day as the disposal. Second, against shares acquired in the 30 days after the disposal. Third, against the share pool, which holds all other shares bought earlier.

The 30-day rule is often called the bed and breakfast rule. It stops someone selling shares to use a loss or the annual exempt amount and then buying the same shares straight back. The repurchase within 30 days is matched with the sale, so the gain or loss uses the repurchase cost, not the old cost.

The same day rule and the 30-day rule are different. Same day covers purchases on the day of sale only. The 30-day rule covers purchases on the following 30 days, and it ranks after the same day rule. Within the 30 days, match with the earliest acquisition first.

Each match is a separate disposal with its own gain or loss. Add them together to get the net gain for the tax year. Then apply the annual exempt amount of £3,000 and the rates of 18% and 24%. This topic only decides the cost for each part of the sale. The pool calculation itself is covered in the share pool topic.

Key rules to remember

Order of matching (individuals): 1st: same day acquisitions; 2nd: acquisitions in the next 30 days (earliest first); 3rd: share pool; Always work in this order. Shares acquired before the disposal go into the pool, not matched individually.
Gain on each matched part: Gain = proceeds of matched shares − cost of matched shares; Proceeds are split in proportion to the number of shares in each match. Add any allowable incidental costs.
Proceeds for a part of the sale: Proceeds of part = total proceeds × (shares in part ÷ total shares sold); Use this when a sale is matched in more than one way.
Capital gains tax rates and exempt amount: Rates 18% and 24%; annual exempt amount £3,000; Rates are those provided in the ACCA tax tables. The rate depends on how much basic rate band is left after taxable income.

How to solve Share Matching Rules for Individuals questions

Use this method for any question that has several purchases and one or more sales of shares in the same company.

1List all purchases and sales in date order, with the number of shares and the cost or proceeds.
2Take each sale. Look for purchases on the same day. Match them first and calculate that gain or loss.
3Look for purchases in the 30 days after the sale. Match the earliest first, up to the number of shares still unmatched. Calculate each gain or loss.
4Match any shares still unmatched with the share pool. Use the pool's average cost per share for those shares.
5Split the sale proceeds between the matches in proportion to the number of shares in each.
6Add the gains and losses to get the net gain for the year, then deduct losses and the £3,000 annual exempt amount before applying the tax rate.

Quickest way: Date check and share count

When to use it: Use in Section A or B objective questions, where you need one gain or one number of shares matched.

Write the sale date. Mark any purchase on that date and any purchase up to 30 days after.
Count shares matched on each rule. Never match more than the shares sold.
Only the leftover shares go to the pool. Ignore the pool if the sale is fully matched by the first two rules.
Work out the gain only for the part the question asks about.

Common mistakes in Share Matching Rules for Individuals

Matching the sale with the pool first
Students are used to pool questions and jump straight to the average cost.
Fix: Check same day and the next 30 days before you touch the pool.
Treating the 30 days as the 30 days before the sale
The words 'within 30 days' are read loosely.
Fix: The 30 days run after the date of disposal. Earlier purchases go into the pool.
Using the whole proceeds against part of the shares
Students forget that one sale can have several matches.
Fix: Split proceeds in proportion to the number of shares in each match.
Matching the latest purchase first within the 30 days
Students think of last in, first out.
Fix: Match the earliest acquisition in the 30-day period first.
Adding post-sale purchases to the pool
All purchases look the same in a list.
Fix: Shares matched under the same day or 30-day rule are removed before the pool is built for later disposals. Only unmatched shares go into the pool.
Forgetting that the annual exempt amount applies once to the total
Each match is computed on its own.
Fix: Add the gains and losses from all matches, then deduct £3,000 once.

Worked examples

Example 1

Anna sold 5,000 shares in Brill plc on 10 June 2026 for £25,000. She bought 2,000 shares on 10 June 2026 for £8,000. She bought 1,000 shares on 20 June 2026 for £4,500. She holds a pool of 10,000 shares bought earlier with a total cost of £30,000. Calculate the gain on each part of the sale.

Show the solution

Same day: 2,000 shares matched with the purchase on 10 June 2026. Proceeds = £25,000 × 2,000 ÷ 5,000 = £10,000. Cost £8,000. Gain £2,000.
30-day rule: 1,000 shares bought on 20 June 2026 (10 days after sale). Proceeds = £25,000 × 1,000 ÷ 5,000 = £5,000. Cost £4,500. Gain £500.
Share pool: 5,000 − 2,000 − 1,000 = 2,000 shares remain. Proceeds = £25,000 × 2,000 ÷ 5,000 = £10,000.
Pool cost = £30,000 × 2,000 ÷ 10,000 = £6,000. Gain £4,000.
Total gain = £2,000 + £500 + £4,000 = £6,500.

Answer: Gains are £2,000 (same day), £500 (30-day) and £4,000 (pool). The total gain is £6,500.

Example 2

Ben sold 3,000 shares in Corvo plc on 1 August 2026 for £18,000. He bought 800 shares on 15 August 2026 for £4,000 and 1,500 shares on 25 August 2026 for £8,250. He also has a pool of 6,000 shares with a cost of £12,000. Calculate the total gain on the sale.

Show the solution

There are no same day purchases.
30-day rule, earliest first: 800 shares on 15 August 2026, 14 days after sale. Proceeds = £18,000 × 800 ÷ 3,000 = £4,800. Cost £4,000. Gain £800.
Next, the purchase on 25 August 2026 is 24 days after sale, so it is within 30 days. Unmatched shares = 3,000 − 800 = 2,200, so all 1,500 shares are matched. Proceeds = £18,000 × 1,500 ÷ 3,000 = £9,000. Cost £8,250. Gain £750.
Pool: 3,000 − 800 − 1,500 = 700 shares. Proceeds = £18,000 × 700 ÷ 3,000 = £4,200.
Pool cost = £12,000 × 700 ÷ 6,000 = £1,400. Gain £2,800.
Total gain = £800 + £750 + £2,800 = £4,350.

Answer: The total gain is £4,350, made up of £800, £750 and £2,800.

Exam tips

Draw a timeline of dates first. It shows at once which purchases fall on the same day or within 30 days.
In objective questions, the trap is usually a purchase just inside or just outside the 30-day window. Count the days carefully.
In written answers, show each match as its own line with the number of shares, proceeds, cost and gain. This earns method marks.
Show the proportion working for proceeds. Markers look for it.
After finding the net gain, state the annual exempt amount of £3,000 and the tax rate used, so you pick up the full marks for the computation.

Practice questions from Gains and losses on the disposal of shares and securities

Share Matching Rules for Individuals in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

ACCA Strategic ProfessionalShare Disposals by Individuals: Matching Rules and Pooling

Share Matching Rules for Individuals: frequently asked questions

What is the difference between the same day rule and the bed and breakfast rule?

The same day rule matches a sale with shares bought on the same day. The bed and breakfast (30-day) rule matches a sale with shares bought in the 30 days after it. Same day comes first, then the 30-day rule.

What happens to shares matched under the 30-day rule?

They are used up in that match. They do not go into the share pool for later disposals. Only unmatched acquisitions are added to the pool.

Do the matching rules apply to all shares?

They apply to shares of the same class in the same company held by an individual. Different companies or different classes of shares are matched separately.

Where do shares bought before the sale go?

Shares bought before the sale date, other than on the same day, go into the share pool. The pool uses an average cost per share for the shares left after the earlier matches.