CXO - Chart Thread, page-7493

No it is not illegal at all. I do it all the time and often a number of times in one day. It is invalid to wash the shares and then report your actions falsely so as to attempt to gain a CGT advantage, but not if you disclose correctly and then gain no CGT advantage. You are confusing capital gains taxation rules with legality. For CGT purposes if you are deemed to have washed your shares, they will be treated as a normal income earning sale, thus no CGT discount rather than as a CGT sale with a discount on the gain attached, and any loss will not go to offset your other CGT gains. It is not however illegal, just not useful for recognising a capital loss against other capital gains. If you are a trader shares are treated as inventory (like a shop) and losses and gains are recognised in full as they are incurred - which is why it is often wiser to trade through a company structure where the tax rate is constant rather than variable as with personal income.

Secondly it depends on how you identify your share parcels and which share parcel you deem you are selling versus how long you have held it. Held under 12 months there is no difference to normal income treatment, so you might designate the parcel sold as being one held under 12 months regardless, as opposed to other parcels you have held for longer, etc.