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Buying gilts - which platform to use?
Comments
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You can find this information for each available ILG at sites like For example, for T29:
For online dealing, you won't know the dirty price until after the trade completes. You submit your order to the dealer to get you the best price they can when they receive it. SWSD seems to be somewhat automated as the order is executed too quickly for a manual trade, but AJ Bell seem to use a human working behind the scenes to fill orders.
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I have to admit I would find it hard to compare the return on a fixed rate savings account to the return on an ILG. The comparison to a conventional gilt would be a lot easier. There are sites which give you figures for the returns but for ILGs they usually state a "real yield" which is how much you would get over inflation (or maybe it is over implied inflation).
For your plan to save on the extra 2% tax you would need to focus on buying a gilt with a low clean price so as much of the return as possible is the gain on maturity (the coupon will attract that extra 2% tax). To find that sort of price you are going to have to look at longer dated gilts and low coupon ones. That is going to be quite a different animal to the fixed rate savings you are trying to replace.
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"for ILGs they usually state a "real yield" which is how much you would get over inflation (or maybe it is over implied inflation)"
It's actual inflation subject to the 3 month lag, whatever that turns out to be. So impossible to know what the nominal return would be until very close to maturity.
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HL does seem to allow you to buy the gilts online, not ILG, the issued gilts with fixed coupons.
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sounds like AJ Bell is the platform to use. I will have a look at them. I haven't invested with them before and was hoping to continue using HL.
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i am interested in fixed gilts, not ILG
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If you are only going to buy conventional gilts then why not use HL? As you say you can buy the conventional ones online at HL.
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because they quote the clean price and so i want to know how much of the interest has already been accrued that I need to pay back.
yes, I can probably do the calculations myself but I would need to find out when the last coupon was paid and then calculate the number of days that had passed. I was hoping this info would be shown during the sale process but it sounds like it isn't unless you use AJ Bell.
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If I choose to buy a gilt already in issue (rather than brand new issues in auction), I will aim to buy a day or so after the interest was paid ( to avoid any sizeable accrued interest), at a price below par.
In that way I get as close as possible to a 'clean price' notwithstanding any brokers commissions.
I only buy fixed coupons gilts, I don't consider ILGs in view of the other variables that can come into play.
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I don't think it is true that only AJBell do that. I would suggest you do a dry run of buying a conventional gilt at HL (without pressing the buy button) and see what information you get. It should be the dirty price ie including the accrued interest.
If you want to get a general idea of clean and dirty prices and the amount of accrued interest for conventional gilts then this page may help.
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