The Taxation of Chargeable Gains (Gilt-edged Securities) Order 2026
This Order specifies eleven additional sterling-denominated government securities as 'gilt-edged securities' for the purposes of the Taxation of Chargeable Gains Act 1992.
By designating these securities, the Treasury ensures that any gains realized on their disposal are exempt from capital gains tax for individuals and corporation tax for companies.
The order applies to any person or corporate entity disposing of the listed securities, which include various Treasury Gilts and Index-linked Treasury Gilts maturing between 2029 and 2056.
Arguments For
The order identifies specific securities to be classified as 'gilt-edged securities' under the Taxation of Chargeable Gains Act 1992.
The explanatory note states that gains on the disposal of specified gilt-edged securities are not chargeable gains for the purposes of capital gains tax or corporation tax.
The Treasury asserts that this instrument contains no substantive changes to policy, as it applies existing statutory definitions to newly issued or identified stocks and bonds.
Arguments Against
Investors in non-specified securities do not benefit from the same exemptions, potentially creating a disparity in the tax treatment of different government-backed instruments.
The complexity of the legislative framework, which requires periodic orders to update the list of exempt securities, may create administrative burdens for taxpayers tracking which specific gilts are currently exempt.
The absence of a Tax Information and Impact Note prevents public scrutiny of the fiscal impact of exempting these specific eleven securities from taxation.
Citation
- This Order may be cited as the Taxation of Chargeable Gains (Gilt-edged Securities) Order 2026.
This section establishes the official title of the legal instrument.
It allows the order to be identified and referenced in legal and tax proceedings.
Securities specified as gilt-edged securities
- For the purposes of the Taxation of Chargeable Gains Act 1992 the following securities are specified as 'gilt-edged securities'-
- 4½% Treasury Gilt 2035
1⅞% Index-linked Treasury Gilt 2049
5⅜% Treasury Gilt 2056
1¾% Index-linked Treasury Gilt 2038
4¾% Treasury Gilt 2035
4% Treasury Gilt 2029
5¼% Treasury Gilt 2041
4ℛ% Treasury Gilt 2031
4ℛ% Treasury Gilt 2033
4ẞ% Green Gilt 2037
- 4℞% Treasury Gilt 2036.
This section lists eleven specific government securities and designates them as 'gilt-edged securities' under UK tax law.
This designation removes these securities from the scope of capital gains tax and corporation tax on chargeable gains.
The list includes standard Treasury gilts, index-linked gilts which adjust for inflation, and a 'Green Gilt' associated with environmental projects.
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