Taxation of Chargeable Gains Act 1992 Schedule 9 paragraphs 1–3

Definition of gilt-edged securities and related provisions

Section Schedule 9, paragraphs 1 to 3 define what counts as a gilt-edged security for capital gains tax purposes and set out the procedural requirements for adding new securities to the exempt list.

• Gilt-edged securities (gilts) are UK Government loan stock, and all disposals have been exempt from capital gains tax since 2 July 1986.
• Gilts are formally defined as those securities listed in Part II of Schedule 9, plus any sterling-denominated stocks and bonds issued under the National Loans Act 1968 after 15 April 1969 that the Treasury specifies by order.
• A strip of a gilt-edged security — that is, a separated interest or principal component — is itself treated as a gilt-edged security and therefore also exempt from capital gains tax.
• When the Treasury adds new securities to the list by order, it must publish the details in the London and Edinburgh Gazettes, and the usual implied power to amend statutory instruments does not apply to these orders.