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Posted Mon, 02 Dec 2024 08:56:42 GMT by Ding888 Ding
Hi I bought US Treasury bills (Short term) and I know that it belongs to deeply discounted securities, I sold it before the maturity date and earn the money. I am not sure it will be counted as foreign income or CGT in this case. Please advise. Thanks
Posted Fri, 06 Dec 2024 10:37:38 GMT by HMRC Admin 20 Response
Hi,
If you invest in deeply discounted securities, put the difference between what you paid for the bond and what you redeem or sell it for in box 3 of SA101 (page Ai1).
Thank you.
Posted Fri, 06 Dec 2024 16:10:10 GMT by Ding888 Ding
Hi Please clarify if the US Treasury Bond (Long term) also belong to deeply discounted securities. If I sold it before the maturity date and earn the money. Should I also just need to put the difference between what I paid for the bond and what I redeem or sell it for in box 3 of SA101 (page Ai1) per you mentioned? Thanks
Posted Thu, 12 Dec 2024 12:21:39 GMT by HMRC Admin 20 Response
Hi,
Deeply Discounted Securities’ (DDS) are government securities, commercial bonds and loan stock, where the amount paid on redemption is higher than the price at which they were issued. The difference is the discount and represents the whole or part of the reward to the holder of the security for the use of the money borrowed by the security issuer.
Where certain conditions apply, the tax rules ensure that gains on such securities are taxed as income, rather than as capital gains.
(SAIM3010 - Deeply discounted securities: introduction). 
If you invest in deeply discounted securities, put the difference between what you paid for the bond and what you redeem or sell it for in box 3 of SA101 (page Ai1).
Thank you.

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