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10 year fixed term saving account
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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...0
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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.0 -
Thanks, also like the yield gimp app. You can put in your investment amount and shows you all your cash flows0
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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.0
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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 etc0 -
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 workRemember the saying: if it looks too good to be true it almost certainly is.0
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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.1
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