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Government Bonds - Gilts
Tax_Slave
Posts: 213 Forumite
I understand that investments and possible gains on government bonds-gilts are CGT free.
Does this apply to;
1 - Buy a dated 2035 bond at say 80 per unit in 2005 - matures expiry in 2035 paying 100 per unit - profit 20 per unit CGT free.
2 - Buy a dated 2035 bond at say 80 per unit in 2005 - sell at 110 per unit in 2015 - profit 30 per unit CGT free.
Is above correct and in both cases profit is CGT free?
Thanks for any answers.
Does this apply to;
1 - Buy a dated 2035 bond at say 80 per unit in 2005 - matures expiry in 2035 paying 100 per unit - profit 20 per unit CGT free.
2 - Buy a dated 2035 bond at say 80 per unit in 2005 - sell at 110 per unit in 2015 - profit 30 per unit CGT free.
Is above correct and in both cases profit is CGT free?
Thanks for any answers.
0
Comments
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My understanding is that both of the scenarios above are correct. Of course the coupon payments received during ownership are not CGT free and treated/taxed as income unless held in an ISA or Sipp2
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