Effective, Post-Tax Yield Comparison for UK Gilts

UK tax residents are typically exempt from Capital Gains Tax (CGT) on gilts, while coupons are subject to Income Tax.

For individual taxpayers, it is therefore preferable to purchase gilts with low coupons in most cases.

However, likely due to this tax advantage, gilts with lower coupons tend to trade at a lower yield than those with higher coupons.

This page allows you to compare the current effective yield of different bonds for a given Income Tax rate, helping you optimize your gilt portfolio to suit your situation.