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GILTS UK vs US

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Comments

  • masonic
    masonic Posts: 27,558 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 2 September at 6:35AM
    DRS1 said:
    Gains on UK gilts are not subject to CGT for a UK taxpayer.  Presumably the same is not true of gains on US Treasury Bonds?
    Same is not true if the UK gilt is in a ETF. 
    Funds in general containing gilts would not be subject to the CGT exemption, only direct gilt holdings. There are also other risks associated with funds that mean they behave quite differently than gilts held directly and to maturity.
  • InvesterJones
    InvesterJones Posts: 1,259 Forumite
    1,000 Posts Third Anniversary Name Dropper
    DRS1 said:
    Gains on UK gilts are not subject to CGT for a UK taxpayer.  Presumably the same is not true of gains on US Treasury Bonds?
    Same is not true if the UK gilt is in a ETF. 
    Do you know of any UK gilt ETFs that hold till maturity?
  • masonic
    masonic Posts: 27,558 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    DRS1 said:
    Gains on UK gilts are not subject to CGT for a UK taxpayer.  Presumably the same is not true of gains on US Treasury Bonds?
    Same is not true if the UK gilt is in a ETF. 
    Do you know of any UK gilt ETFs that hold till maturity?
    There are plenty of these. The trouble is there are no examples which run down their portfolio, so an investor never gets their capital back unless they sell their shares including the whole underlying portfolio.
  • PixelPound
    PixelPound Posts: 3,063 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 3 September at 7:41AM
    DRS1 said:
    Gains on UK gilts are not subject to CGT for a UK taxpayer.  Presumably the same is not true of gains on US Treasury Bonds?
    Same is not true if the UK gilt is in a ETF. 
    Do you know of any UK gilt ETFs that hold till maturity?

    Do you mean ones that hold their bonds until they mature, or ones with a defined maturity date?

    ishares ibonds do, you can get Dec 2028, Dec 2029, Dec 2030 etc
    Or Invesco bulletshares
  • Cus
    Cus Posts: 797 Forumite
    Sixth Anniversary 500 Posts Name Dropper
    Comparing the risk of default between the US and UK is tricky (the US has slightly higher credit ratings than the UK)
    Surely it's not tricky. Neither will default. If you think they might isn't it time for gold bullion under the bed?
    There could be some sort of technical default that leads to a reduced payment.  I know it's not the same but Argentina have defaulted twice I think and society continues.
  • InvesterJones
    InvesterJones Posts: 1,259 Forumite
    1,000 Posts Third Anniversary Name Dropper
    DRS1 said:
    Gains on UK gilts are not subject to CGT for a UK taxpayer.  Presumably the same is not true of gains on US Treasury Bonds?
    Same is not true if the UK gilt is in a ETF. 
    Do you know of any UK gilt ETFs that hold till maturity?

    Do you mean ones that hold their bonds until they mature, or ones with a defined maturity date?

    ishares ibonds do, you can get Dec 2028, Dec 2029, Dec 2030 etc
    Or Invesco bulletshares
    Yeah I was thinking ones that hold until maturity. I could never find out how to actually buy ishares ibonds.

  • wmb194
    wmb194 Posts: 5,092 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    DRS1 said:
    Gains on UK gilts are not subject to CGT for a UK taxpayer.  Presumably the same is not true of gains on US Treasury Bonds?
    Same is not true if the UK gilt is in a ETF. 
    Do you know of any UK gilt ETFs that hold till maturity?

    Do you mean ones that hold their bonds until they mature, or ones with a defined maturity date?

    ishares ibonds do, you can get Dec 2028, Dec 2029, Dec 2030 etc
    Or Invesco bulletshares
    Yeah I was thinking ones that hold until maturity. I could never find out how to actually buy ishares ibonds.

    Trading212 appears to offer them, only euro and US dollar iBonds appear to exist though.

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