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10 year fixed term saving account

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  • Johnjdc
    Johnjdc Posts: 396 Forumite
    Tenth Anniversary 100 Posts Name Dropper
    edited 18 February at 11:20AM
    Capital gains on gilts are all tax-free as long as the gilt pays a coupon. Only gilts which have been "stripped" (paying 0% and all capital gain) are taxable. Of course, there's no guarantee this will remain the case for 10 years...
  • InvesterJones
    InvesterJones Posts: 1,217 Forumite
    1,000 Posts Third Anniversary Name Dropper
    JonesM said:
    Thanks all, from all the comments I understand the screen shot, plus the maths.
    one last question.
    I have over 85k to invest. Do I need to split my investment between different brokers, to get the FSCS protection. Or do I own the bond and there it doesn’t matter if the broker goes bust. Hope that makes sense.
    You own the bond. So only concern is whether HM Treasury pay up.
  • JonesM
    JonesM Posts: 6 Forumite
    Part of the Furniture First Post
    Thanks, also like the yield gimp app. You can put in your investment amount and shows you all your cash flows
  • masonic
    masonic Posts: 27,169 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I would certainly give index linked gilts consideration if holding over such a long time period. This would give you an above inflation return based on current prices.
  • ChilliBob
    ChilliBob Posts: 2,321 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    If you're not sure 100% on the time horizon, you could build a 'gilt ladder' - e.g some which have a redemption date a bit earlier. Between TG35 and lower there's only a few options with low coupons.

    Personally I have bigger chunks in tn28 and tg35 and then far less in say tg29, 31 etc
  • jimjames
    jimjames Posts: 18,636 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 18 February at 1:08PM
    Is it worth investing any of it if it's over such a long period? Or using pension if it's for retirement as then it will get tax relief which could boost it by at least 20%? It doesn't sound like you want the capital at once so if income is more important then that might work
    Remember the saying: if it looks too good to be true it almost certainly is.
  • poolboy
    poolboy Posts: 179 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    I understand op s objective to optimise tax, as I am v similar.  But really, so much can change in that period I really wouldn't lock into anything you cannot sell, so gilts seems the only solution.  
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