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  • RE: How to report income and gain from GILT?

    Coming back to this topic, and asking for HMRC ADMIN to clarify as I am filling my 2023/2024 tax return. I bought a Gilt-edged security: UKT 0.125% which matured on 31 January 2024. I bought this Gilt at two different times after issuance, in both cases at a price below par, and I held it to maturity. I know that: - this is NOT subject to capital gains tax - this is subject to income tax As to income tax, I assume that I need to report the coupons received, minus any accrued interest I paid at the time of purchase. That said, this Gilt was issued at a price of 100.5020, i.e., above par, which means that someone buying it at issuance will have received a return which is lower than the coupons received. Am I able to deduct (at least part of) the difference between issuance price and redemption price for income tax purpose? And, hypothetically, had the Gilt been issued below par (but not qualifying as a deeply-discounted security), should I have reported (at least part of) the difference between redemption price and issuance price for income tax purposes? Many thanks in advance