Investments with no income or capital gains tax

wmb194

caldi9 said:

wmb194 said:

caldi9 said:

TheGreenFrog said:

Rather esoteric perhaps, but QCBs are free of CGT.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg53702

Not that easy for retail investor to identify or even buy a QCB though.

Great idea. Are all sterling denominated bonds QCBs? Don’t brokers offer them to retail investors?

Essentially yes, when I looked into it they all appeared to qualify. I found a list somewhere with the questions you need to ask of the bond to tell whether it qualifies or not and it seemed to me that it would be rare for a bond not to.

What is the issue though? High nominal value for retail investors? Would consider low yielding bonds at lower prices (unless company has apparent issues) and short-term maturities.

I don't understand your questions but you can look through e.g., what's available on London's ORB. ORB bonds have small minimum trade sizes.

https://www.londonstockexchange.com/live-markets/market-data-dashboard/price-explorer?categories=BONDS&subcategories=12

MX5huggy

Classic cars (well all cars) are Capital Gains exempt because they are considered “wasting assets” they don’t generate income (unless you rent them out). 

TheGreenFrog

For trading QCBs, and bonds in general, it is worth using a broker that gives you ready access to OTC bonds and other exchanges as what is available on LSE is limited.  Interactive Brokers for example (although they don't allow gilt trading for reasons I don't really understand).

IB has a useful bond scanner so you can filter your search.

jaypers

If your employer has a ‘Share Incentive Plan’ available, these are free of any CGT or income tax for any deals performed from within the scheme. Contributions also come out of gross pay so another win, especially for higher rate tax payers. Obviously shares are locked in for a pre-defined period etc.