Gilt ladder in SIPP - some not availiable gilts in platform

incus432

I am researching setting up a conventional gilt laddder inside my SIPP (as an alternative to taking a joint lifetime annuity). I have been using the excellent tool at https://lategenxer.streamlit.app/Gilt_Ladder.  

Unfortunately when looking at the individual gilts needed to implement my selected choice of income, some seem to be unavailable in AJBell (T31H, T33H, T41F), or at least not listed there. Can anyone who is familiar in this area advise if there is a simple workaround? 

I have selected zero as income tax rate as it is inside the SIPP - of course this may change if RR follows through on the budget plan to tax cash and cash-like holdings inside SIPPs and ISAs. (Edit - I understand from Aretnap this change will only apply to ISAs, not SIPPs)

Grateful for any help!

PS I have asked AJBell about these gilts. Their list appear to be those available for online trading so maybe a telephone service is an option for others.

Aretnap

incus432 said: 

I have selected zero as income tax rate as it is inside the SIPP - of course this may change if RR follows through on the budget plan to tax cash and cash-like holdings inside SIPPs and ISAs. 

There are no plans or proposals to tax interest on cash or cash-like investments inside SIPPs. Stocks and shares ISAs, yes, but not SIPPs.

SVaz

Just get a similar Gilt that is available?  You could double up on the previous year’s one if it’s priced under par. 

af1963

How precise do you really need the cash flow to be?  There are similar bonds for each of these, with slightly different maturity dates and coupons, but close enough for many purposes.  You could manually substitute them.

If you think you'll really need the proceeds from each bond as soon as it hits maturity, pick an earlier-maturing one and invest around the same value, and you'll get the cash back earlier.  If you won't need the cash instantly you could substitute with a slightly later maturing bond.

incus432

Thanks. Timing not critical really but I was hoping to get it set up and then have regular automatic payments, so it wouldnt need tweaking.  I can see that i could buy an earlier maturing gilt instead but I guess I would also have to make sure the coupon from this matched the one I'm missing ( eg T41H) otherwise there'd be a shortfall 

SVaz

If you buy one under par then you’ll have a capital gain that may compensate if the coupon is slightly less

DRS1

The three you have identified seem to be relatively new.  I wonder if that has something to do with it? 

Phoning their dealers would be a good idea.  Recently I could not find an ILG on HL's list and as I had to phone HL to deal in ILGs anyway I asked about it and the dealer found it so I could do the deal. 

incus432

T41H pays a high 5.25% coupon so buying a lower coupon gilt instead would mean a shortfall in income until it matures. So It's a cashflow issue. Would have to leave enough cash float to cover it. 

Has anyone made an Excel spreadsheet where you can input gilts and quantities to then show cashflow? I am doing it myself but it is very tedious

DRS1

incus432 said:

T41H pays a high 5.25% coupon so buying a lower coupon gilt instead would mean a shortfall in income until it matures. So It's a cashflow issue. Would have to leave enough cash float to cover it. 

Has anyone made an Excel spreadsheet where you can input gilts and quantities to then show cashflow? I am doing it myself but it is very tedious

There is a cashflow bit in lategenxer.  It is the tab next to Implementation.

MK62

With the lategenexer gilt ladder tool, when used for IL gilts, be aware that the cashflow balance is adjusted for assumed inflation (so it appears not to add up correctly).......can be a bit confusing at first.

incus432

Quick update - the missing gilts are available with AJBell (just have not yet updated the list on the website ) and they also offered to do the deals on the phone at the same price (£5 per trade).  Top marks.