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Posted Sun, 10 Sep 2023 21:06:26 GMT by SF Chan
For the US Treasury Bond Gain upon maturity (with no bond interest) from my foreign account via broker firm(non uk), should the gain treat as dividend or interest income?
Posted Mon, 18 Sep 2023 14:56:17 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 as 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 the price received 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 more information here:

SAIM3010 - Deeply discounted securities: introduction

Thank you.

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