How clients can beat the squeeze with tax-efficient gilts

What role do gilts play in a diversified portfolio?

clock • 4 min read

Guy Foster looks at how the gilt market works and explains how it can play a useful role in tax-efficient investment portfolios...

Higher interest rates and cuts to the capital gains tax (CGT) exemption are making UK government bonds, or gilts, an attractive option for investors. While there are tentative signs that UK inflation may be under some semblance of control, gilt yields are still elevated as a result of a global change in longer-term interest rate expectations, making the asset class well worth a look. This may create buying opportunities for some higher and additional rate taxpayers, for whom the CGT-exempt status of gilts can be particularly beneficial. So, how do gilts work? and how can they play a u...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Wealth managers turn to private markets to offset geopolitical risks

Wealth managers turn to private markets to offset geopolitical risks

60% allocation in 2025

Patrick Brusnahan
clock 26 January 2026 • 1 min read
Chris Justham: All I know about love and the next 12 months

Chris Justham: All I know about love and the next 12 months

'There's power in admitting that you don't know'

Chris Justham
clock 22 January 2026 • 2 min read
Rathbones looks for growth after year of internal focus during Investec merger

Rathbones looks for growth after year of internal focus during Investec merger

Growth in funds under management and administration to £115.6bn

Eve Maddock-Jones
clock 15 January 2026 • 3 min read