Taxation of Gilts

[Alaric]

The recent rise in interest rates and subsequent fall in prices may make some Gilts worth looking at. I'm thinking of short dated very low coupon ones. For example there is UNITED KINGDOM(GOVERNMENT OF) 0.125% SNR BDS 30/01/2026 GBP1000 trading on ii at 86.49 bid and 87.49 offer. So that's a guaranteed gain of 12.50 per 100 nominal if held to maturity in January 2026. Question is as to whether the gain is taxable? I think Gilts were exempt from CGT, but is that correct? The coupon payments would be part of £ 1000 / £ 500 interest alloawance.

[GeoffF100]

The recent rise in interest rates and subsequent fall in prices may make some Gilts worth looking at. I'm thinking of short dated very low coupon ones. For example there is UNITED KINGDOM(GOVERNMENT OF) 0.125% SNR BDS 30/01/2026 GBP1000 trading on ii at 86.49 bid and 87.49 offer. So that's a guaranteed gain of 12.50 per 100 nominal if held to maturity in January 2026. Question is as to whether the gain is taxable? I think Gilts were exempt from CGT, but is that correct? The coupon payments would be part of £ 1000 / £ 500 interest alloawance.

Yes, gilts and qualifying bonds are free of CGT. Coupons are taxed as interest.

[mc2fool]

The recent rise in interest rates and subsequent fall in prices may make some Gilts worth looking at. I'm thinking of short dated very low coupon ones. For example there is UNITED KINGDOM(GOVERNMENT OF) 0.125% SNR BDS 30/01/2026 GBP1000 trading on ii at 86.49 bid and 87.49 offer. So that's a guaranteed gain of 12.50 per 100 nominal if held to maturity in January 2026. Question is as to whether the gain is taxable? I think Gilts were exempt from CGT, but is that correct? The coupon payments would be part of £ 1000 / £ 500 interest alloawance.

Interesting spot, although you can get 4.3%pa on a 3 year fixed savings a/c according to MSE, but all taxed as interest of course....

[Alaric]

Interesting spot, although you can get 4.3%pa on a 3 year fixed savings a/c according to MSE, but all taxed as interest of course....

That would count against the £ 1000 / £ 500 allowance. The idea was as a home for "rainy day" money. Although the capital isn't guaranteed, it would be readily realisable in a way that a fixed term account may not be,

[mc2fool]

Interesting spot, although you can get 4.3%pa on a 3 year fixed savings a/c according to MSE, but all taxed as interest of course....

That would count against the £ 1000 / £ 500 allowance. The idea was as a home for "rainy day" money. Although the capital isn't guaranteed, it would be readily realisable in a way that a fixed term account may not be,

All true, although from your OP it seemed you were figuring on holding to redemption but, as you say, you always have the option not to.

Do you have a source that lists gilts and shows the current redemption yield?

[air04]

That would count against the £ 1000 / £ 500 allowance. The idea was as a home for "rainy day" money. Although the capital isn't guaranteed, it would be readily realisable in a way that a fixed term account may not be,

All true, although from your OP it seemed you were figuring on holding to redemption but, as you say, you always have the option not to.

Do you have a source that lists gilts and shows the current redemption yield?

https://reports.tradeweb.com/closing-prices/gilts/ has the yields, you may need to register.

I track it using my spreadsheet as the above is only end of day(not live), I use feed from HL website, but the feed from HL needs some manual refreshing sometimes(so has "NO DATA" sometimes)
https://docs.google.com/spreadsheets/d/ ... 9&range=C2

[mc2fool]

All true, although from your OP it seemed you were figuring on holding to redemption but, as you say, you always have the option not to.

Do you have a source that lists gilts and shows the current redemption yield?

https://reports.tradeweb.com/closing-prices/gilts/ has the yields, you may need to register.

I track it using my spreadsheet as the above is only end of day(not live), I use feed from HL website, but the feed from HL needs some manual refreshing sometimes(so has "NO DATA" sometimes)
https://docs.google.com/spreadsheets/d/ ... 9&range=C2

Hi! Thanks, but another thread, https://www.lemonfool.co.uk/viewtopic.p ... 24#p533824, led me to Tradeweb soon after my post above.

Your Google spreadsheet looks interesting and worked earlier but it's just showing no data for me right now, do how do I do the manual refresh? Couldn't find anything obvious. Also, can I change the column widths as, when it was working, the textual ones were too narrow.

When I'm interested in looking, I download the Tradeweb data and suck into an Excel spreadsheet with some extra columns added, https://www.lemonfool.co.uk/viewtopic.p ... 98#p540498, and then update the few gilts I'm interested in with actual trading quotes from my broker. But if I can get your Google spreadsheet to work it'd save me some faff.