Gilt and qualifying corporate bond CGT exemption (UK individual)
Gains on qualifying gilt-edged securities and qualifying corporate bonds are generally exempt from capital gains tax for individuals, subject to the statutory conditions. This concerns the gain on the security, not a blanket exemption for interest income; the definition and identification of a qualifying security must be checked.
Worked example
An individual disposes of a qualifying exempt gilt at a gain of £2,000. Assuming the conditions for exemption are met, that gain is not chargeable to capital gains tax; any interest is considered separately.
Common mistake
Assuming that exemption of a qualifying security’s capital gain means its interest is automatically exempt from income tax.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |