Hargreaves Lansdown and Interactive Investor unlock new gilt issues for DIY investors

Andreg

newatc said:

Am I right in thinking that in purchasing Gilts on HL and holding in Share Account the costs would be 
Dealing Charges of £11.95 on entry and exit
No charges for Holding
Stamp Duty?

Additionally interest paid out would be subject to  tax. 

I guess they don't charge a dealing charge on the maturity proceeds, if you hold the gilt to maturity.  You could check.
There is no stamp duty on gilts.
Any regular interest payments (i.e. 'coupons') on gilts are subject to income tax (unless its in an ISA or SIPP).  The premium/discount (i.e difference between clean price of the bond at purchase and face value received at maturity - which you can also consider to be interest) is not subject to income tax.
If you sell the gilt prior to maturity the accrued coupon included in the sale price of the gilt is subject to income tax.
Gilts are exempt from capital gains tax.

newatc

Thanks Andreg. As I almost into the higher tax rate because of the fiscal drag, I think I should consider finding a low coupon rate for short term (up to 5 years maybe) to replace some savings (well passed personal savings allowance). 

coyrls

GeoffTF said:

coyrls said:

You would need to compare it with a seven year fixed rate account with interest paid every 6 months but as such a product doesn't exist you could compare it to a 5 year fixed rate account with interest paid annually.  You can't compare to bank account interest as that could change many times over a seven year period.

Here is a list of 7 year fixed rate accounts:

https://www.fairerfinance.com/ratings/product-ratings/7-year-fixed-rate-accounts

Fair enough.  That would be a better comparison.

Hoenir

With a fixed rate deposit account there may well be restrictions on when you able to withdraw your money. A Gilt is tradeable when the markets are open.