UK Treasury Updates: New List of Tax-Exempt Gilt-Edged Securities Announced

In an important update for investors, the UK Treasury has issued the Taxation of Chargeable Gains (Gilt-edged Securities) Order 2025, which outlines a fresh list of "gilt-edged securities" exempt from capital gains tax. This means that gains from selling these securities won't attract capital gains tax for individuals or corporation tax for companies.

What are Gilt-edged Securities?

Gilt-edged securities are high-grade bonds issued by the UK government, typically considered low-risk investments. They are an attractive option for investors seeking stable returns with tax benefits.

Key Securities on the List:

The order specifies 14 gilt-edged securities, including:

• 4½% Treasury Gilt 2028
• 0¾% Index-linked Treasury Gilt 2033
• 4⅝% Treasury Gilt 2034
• 4¾% Treasury Gilt 2043
• 4% Treasury Gilt 2031
• 1¼% Index-linked Treasury Gilt 2054

These securities, issued after April 15, 1969, and denominated in sterling, are now formally recognized as tax-exempt.

Why This Matters:

The exemption from capital gains tax makes these securities particularly appealing to investors looking to optimize their portfolios for tax efficiency. This move aligns with Section 115 of the Taxation of Chargeable Gains Act 1992, which aims to encourage investment in government bonds.

Stay Informed:

For a comprehensive list of all gilt-edged securities that benefit from this tax exemption, visit the official government website or contact HMRC directly.

While this order does not introduce any new policy changes, it reaffirms the existing tax advantages associated with these government securities. Investors can continue to enjoy stable returns without the worry of additional tax burdens.

For more detailed information, you can refer to the official documentation or consult with financial advisors to see how this might affect your investment strategy.

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This article is based on the statutory instrument issued by the UK Treasury on May 6, 2025, and aims to provide a clear understanding of the tax implications for investors holding these securities.