Jack

The advice on 'gilt strips' 6 months ago seems quite misleading, since Edmund asked about GILTS, not GILT STRIPS. From what I can tell, they have different tax treatment. My understanding is that for individuals, GILT coupons are taxed as income, but the uplift from purchase price to redemption is capital-gains free. Please can you confirm or provide an alternative explanation.

I think this is still incorrect. Should you not apply the starting rate for savings also? Since their non-savings income is 0, I would expect them to still have a £5,000 starting rate allowance. If this is the case, would the first £18,570 (12,570 + 1000 + 5000) be tax-free?