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Capital stock or bond?

A number of reasons.

I don't fully understand how they are priced[1] and it's not immediately obvious whether you will get your capital back or not at maturity. Typically I would expect you definitely would but, for example, it's not obvious to me that

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give me my money back in 2009 AFAICT there is only a very limited set of maturities available.

AIUI, the OP is looking for a low to no risk way of getting capital gains (presumably to use up his CGT allowance). To get that low risk he has to hold the gilts to maturity

AFAICT All of the short term (

Reply to
google
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Do you mean that the index-lining part is taxed as a capital gain? Surely it is treated as interest and taxed as income, it's just that the rate is calculated based on the RPI.

Robert

Reply to
RobertL

Both the coupon and the face are index linked.

I would assume[1] the coupon would be treated as income and the face (redemption) as capital gain.

Tim.

[1] But my assumptions were wrong further up this thread wrt strips so take this with a big pinch of salt.
Reply to
google

Gilts are not subject to CGT in any case. The income is that which is paid as interest. The capital is what gets paid back at redemption, or when sold.

Reply to
Terry Harper

"Terry Harper" wrote

Has that always been the case?

Of course, if you bought at par and sold/redeemed at par, then there would be no gain and so no CGT anyway. But that's unlikely for an IL gilt, isn't it (and not necessarily true for normal gilts either) ?

Reply to
Tim

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