VosFraG

My business retains a significant portion of earnings to pay dividends and to corporation tax. Currently these funds are held in savings accounts, the interest reported and taxed. I understand that if an INDIVIDUAL purchases Gilts that the coupon is taxable however the capital gain (difference between purchase and maturity) is tax free. I have had difficulty finding information for a COMPANY purchasing gilts. The DMO (https://web.archive.org/web/20240813114914/https://www.dmo.gov.uk/responsibilities/gilt-market/buying-selling/taxation/) appears to indicate that gilts are treated as a loan relationship and that the total return (coupon and gain on maturity) would be taxable. However CFM37100 appears to carve-out gilts as a special case and specifies that "All gilts are wholly exempt from chargeable gains". Please clarify the tax treatment of gilts held by a company, including two scenarios: 1) Gilts held to maturity 2) Gilts sold before maturity