Mini Equity ISA in gilts and bonds

dunstonh

If you sell that £100 before the end date, you will be subject to market conditions which may offer a lower price at that time.

cheerfulcat

R_._Tatac wrote:

if you buy £100 worth for £99.90 how can that guarantee a capital loss ??

Am I missing something ?

No, of course not :-) But in general, medium and long bonds are trading above par. Bear in mind too that not everyone is a 40% taxpayer ( yet :-) ).

Edit - I am not trying to knock your arrangement, btw; I had something similar in mind.

The other thing to remember is that gilts are only as safe as cash if held to redemption, so anyone thinking of doing this must be sure that they won't need to sell early...