US government bond

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?

Hi,

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.

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!

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.

Dear Sir, Please advise which box I should fill in SA100 of US Treasury bond gain of tax return? thanks.

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.