Buying Bonds

John464

As I understand it the capital gain on bonds is not taxable?
So with low coupon bonds selling cheap thats very attractive to a taxpayer
For instance 
https://www.bloomberg.com/markets/rates-bonds/government-bonds/uk
2 year UK Govt Bonds coupon 0.63%
yield 5.35%
so (5.35 - 0.63) = 4.72% is tax free

So is it time to take our money out of savings accounts and buy bonds?
--- and where is the best place to buy them?

Doctor_Who

UK government bonds (gilts) are free of CGT. The coupon is taxable if held outside a tax wrapper.

https://www.gov.uk/guidance/gilt-edged-securities-exempt-from-capital-gains-tax

A list of gilts can be found here:

https://www.dividenddata.co.uk/uk-gilts-prices-yields.py

This is a very useful thread regarding buying gilts:

https://forums.moneysavingexpert.com/discussion/6309692/gilts-understanding/p1

As to whether you should invest in gilts, only you can decide that. They give a guaranteed coupon and you know the price you will get if they are held to maturity. The only real variable is the price you buy them at. Investment platforms normally let you buy gilts, although the range offered might be limited and you may have to phone them. 

Linton

You can buy gilts online from some platforms, II and HL for example.   II do not sell all gilts online, others you would have to buy by phone.  In some cases (AJ Bell) you can only buy gilts by phone.  If the gilts you want are only available by telephone you are likely to find that the charge would be the same as for online trading..

1404

Evening all,

Been watching a US channel which is advocating 5% yields on short-term treasuries as a no-brainer for investors.

What would be the UK equivalent of this, please?

sevenhills

1404 said:

What would be the UK equivalent of this, please?

How about this?

https://www.nsandi.com/products/guaranteed-growth-bonds