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Posted Thu, 31 Aug 2023 00:18:19 GMT by Mable Lau
Hi! May I know that when I receive the money on maturity day of the US government bond, it should be counted as capital gain tax, right?
Posted Tue, 05 Sep 2023 08:07:47 GMT by HMRC Admin 19

US government bonds, sometimes known as T-Bills or Treasury Bills, are generally taxed as income rather than capital gains. The return is paid at maturity rather than regular interest payments.

In the UK, these are known as deeply discounted securities, with the discount being the difference between the price at which they were issued and hte price redeived at maturity.  

On a foreign investment the income is the difference between the purchase and redemption price after each has been converted to sterling on the day the transactions took place, so includes any foreign exchange gains. Losses cannot be deducted. You can see guidance here:

SAIM3010 - Deeply discounted securities: introduction 

Thank you.
Posted Tue, 05 Sep 2023 09:18:23 GMT by Mable Lau
Thank you for your reply! I will put the earnings on US government note in my foreign income. How about the interest, counted as foreign interest, right? Is that I should use the rate of the maturity day to file the self assessment even I didn't convert the USD to sterling on that day? Thank you!
Posted Thu, 07 Sep 2023 11:55:09 GMT by HMRC Admin 20
Hi Mable Lau,

You can use any of the rates referred to at - Exchange rates from HMRC in CSV and XML format within the correct UK tax year.

Thank you.
Posted Thu, 30 Nov 2023 11:50:36 GMT by Lisa
Dear Sir, Please advise which box I should fill in SA100 of US Treasury bond gain of tax return? thanks.
Posted Fri, 01 Dec 2023 10:21:37 GMT by HMRC Admin 25
Hi Lisa,
US treasury bonds are seen as deeply discounted securities.
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 Sat, 02 Dec 2023 09:46:15 GMT by Lisa
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