Accrued Interest on Gilt Purchases - When to report

ChilliBob

Hey everyone,

I made my first foray into Gilts fairly recently, like I'm sure many people did. One of my Gilts, TN24 matured recently, and hence when compiling my next tax return I'll need to add some information on this.. 

* I'm aware I need to add the coupons from the Gilt, as interest income.
* I'm aware I'll need to (well, I could) add in the accrued interest by looking at the contract notes - II shows something like 'Interest + 60 days'

I'm assuming that for other Gilts which have not matured then I basically do the same thing? - The fact the Gilt has matured, strangely, doesn't really have any interest to HMRC from what I can tell. It's just reporting the income essentially. (Yes, these are non CGT Gilts, not strips or anything else).

GeoffTF

I am not sure what your question is, but here are the rules:

https://www.gov.uk/government/publications/accrued-income-scheme-hs343-self-assessment-helpsheet/hs343-accrued-income-scheme-2022

aroominyork

Why is it strange that HMRC are not interested in the gilt maturing? You pay no tax on the capital gain so it's irrelevant to HMRC.

I'm not sure exactly what your question is about accrued interest but, if you bought the gilt during FY24, the accrued interest you paid - the difference between the clean price and the dirty price - is deducted from your interest income and reduces your tax liability.

ChilliBob

I think as it's my first year handling Gilts I was just not thinking it through properly!

It makes sense essentially that any income arising in that tax year - be that from matured Gilts, or ones still with many years, is relevant to HMRC, and not much else regarding Gilts (things like Strips aside). 

Just need to go through my Gilt contract notes now, all 27 of them!