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Gilts and Corporation Tax

Have a limited company client with corporate investments in gilts.  Whilst I am aware of the CT treatment of interest, if the company makes a gain on such a gilt, is it exempt from any tax payable on that gain?

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Yes

... provided that the gilt is on HMRC's list of exempt gilts.

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No

The Gilts are exempt from corporation tax on chargeable gains.   However, any gain arising on the disposal of a Gilt will be taxable under the Loan Relationship provisions found in Part 5, CTA 2009.

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