HMRC Surplus Income gifting clarity - IHT

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82069922#Comment_82069922

I suspect you will be told that what you are doing here is turning something which could (with a savings account) have been income into capital gain - but a capital gain is still capital.

Dead_keen

But using the ladder technique to buy a series of short date government gilts purely because they offer higher (after tax) interest rates, directly because the return is interest free vs savings where all the interest is taxable is designed to create an income stream.

What you are doing here is turning something which could (with a savings account) have been income into capital gain - but a capital gain is still capital.

With apologies to @DRS1

silvercar

I realise that now. So the advantage of the tax free status of gilts has what could be the disadvantage of the gain not being income for ‘gifts out of income’ purposes. Clearly the tax free status is worth more to me, but it’s worth noting.