Taxation of Chargeable Gains Act 1992 section 115

Exemptions for gilt-edged securities and qualifying corporate bonds etc.

Section 115 exempts from capital gains tax any gains arising on the disposal of gilt-edged securities, qualifying corporate bonds, and related options or contracts.

• Gains on disposals of gilt-edged securities and qualifying corporate bonds (QCBs) are completely exempt from capital gains tax.
• The exemption also covers options and contracts to acquire or dispose of these securities.
• Where a contract relates to these securities, a disposal refers to disposing of the outstanding obligations under that contract.
• Closing out a contract by entering into a reciprocal contract counts as a disposal of the outstanding obligations under the original contract, and is therefore also exempt.