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Question

What's a GILT/Treasury Stock?

Answer

Gilts are bonds issued specifically by the British Government.  A conventional Gilt will pay you a fixed cash payment every 6 months until maturity, at which point you will receive your final payment and the return of the initial investment.

You can sell corporate/government bonds at any time, and because prices go up when interest rates fall, modest capital gains are possible.  These gains are tax-free on Government bonds and some corporate bonds.  Interest earned is usually taxed, unless bonds are held in an Investment ISA.

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