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Posted Tue, 28 May 2024 15:04:16 GMT by Em.
Hi, My understanding is that accrued interest paid when buying gilts can be offset against the income (coupons) generated by these gilts. However, where the interest period spans the tax year, am I correct into thinking that the losses coming from those accrued interests are not allowed until the interest is taxed in the following tax year ? As an example, if the interest period for a gilt was from end of October 23 to end of April 2024 and I bought this security in let say January 2024, I am correct into assuming the accrued interest loss coming from this purchase would be offset against the income from the coupons paid during the tax year 2024/2025 (and not 2023/2024 despite the fact the bonds were purchased during the 2023/2024 tax year) ? Thanks
Posted Mon, 03 Jun 2024 13:00:11 GMT by HMRC Admin 19
Hi,

You can see guidance here:

HS343 Accrued Income Scheme (2024)

Thank you.

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