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

Advisers zoomed in on capital accumulation in Q4 2025

Advisers zoomed in on capital accumulation in Q4 2025

Titan Square Mile research finds

Jen Frost
clock 30 January 2026 • 3 min read
Measure for measure: How to track your tracker fund

Measure for measure: How to track your tracker fund

Tracking difference and tracking error

Terry McGivern
clock 28 January 2026 • 3 min read
SJP and AJ Bell pivot from US mega-caps in MPS as concentration woes continue

SJP and AJ Bell pivot from US mega-caps in MPS as concentration woes continue

Healthcare, energy and EM preferred

Linus Uhlig
clock 28 January 2026 • 2 min read