In finance, the term bed and breakfast deal refers to a practice in which securities are sold at the close of a trading day and repurchased at the opening of the following trading day.
The term also refers to the practice of selling securities at the close of a tax year and repurchasing the same shares at the opening of the new tax year. This practice is common in countries which levy capital gains taxes but have annual tax-free capital gains allowances. By selling securities at the end of the year, investors can claim the tax-free capital gains allowance, after which they repurchase the securities which they wish to hold.
In Switzerland, private investors do not pay capital gains tax on securities investment returns.