Kin
Joined: 8/6/2024
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Capital gain tax on GBP corporate bond
The GBP corporate bond was issued at £100 with a coupon of 4% for 5 year maturity. The bond subsequently traded down and I purchased it from secondary market at £80 with remaining 3 years to maturity. Do I need to pay capital gain tax on the £20 capital gain? Would there be any difference if the issuer is a UK company or non-UK company? Would it be considered as Deep Discounted Securities as I purchased it way below its issued price?