Why low-coupon gilts?
When you buy a gilt below its £100 par value, the difference between your purchase price and the £100 redemption value is a capital gain — completely exempt from Capital Gains Tax in the UK. Only the coupon income is taxable. For higher-rate and additional-rate taxpayers, this makes low-coupon gilts an exceptionally efficient way to earn near-risk-free returns. Use the calculator below to see estimated after-tax returns based on your tax band and investment size.
Investment
£10,000
at selected tax rate: 40%
Best deal — nominal purchased
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Redemption proceeds
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redeems at £100 par · capital gain is CGT-free
Capital gain (£) — CGT-free
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proceeds minus cost · coupon income paid additionally, semi-annually
Best after-tax annual return — all gilts
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Gilts shown
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conventional gilts in issue
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Conventional Gilts in Issue — 22 Securities
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| Gilt | Ticker | ISIN | Cpn | Redemption | Div Dates | In Issue (£m) | Price | Running Yld | Cap Gain | Basic An Rtn | After-Tax An Rtn | Maturity |
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