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...
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