UK GOV Bonds(gilt) CGT and interest income

Dear HMRC, I hold UK GOV Gilt that not hold in my ISA account,Do the capatial gains and the interest income need to report to HMRC when preparing the tax return? thx

Hi terrywykwong,
UK gilts are exempt from Capital Gains.
Interest on gilts are liable to income tax unless held in a SIPP or ISA so you would need to report the interest if not held in either of these accounts.
Thank you.
 

Dear HMRC, May I ask the gains whether between the purchase and redeems of UK GOV Gilt is classified as interest income? If is is a interest income, it is subjected to income tax,Am I correct? Thx

Hi terrywykwong,
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
Thank you. 

Hi if Gov GILTS are held in a UK limited company, are are capital gains (not interest) subject to Corporation tax?

Hi,
 

The legislation under TCGA92/S115 (1) states: A gain which accrues on the disposal by any person of— (a) gilt-edged securities or qualifying corporate bonds, or (b) any option or contract to acquire or dispose of gilt-edged securities or qualifying corporate bonds, shall not be a chargeable gain. You can look at CG53406 - Securities: debts: CG treatment of debts: - gilt-edged securities, for more details and references. Thank you .