# Interest gets taxed. Gilt gains don’t. Level up your tax efficient investing with UK government bonds. Yields shown assume Gilt is held to maturity. If sold before, you may get back less. Tax treatment depends on individual circumstances and may change. Forecasts are not a reliable indicator of future performance. Illustration only. Calculation is based on the tax band you select and assumes you buy at the current dirty price, hold until maturity, the UK government makes every payment in full and on schedule, and coupon payments are reinvested at the same yield-to-maturity. Data displayed above is indicative only and its accuracy is not guaranteed, actual execution price may vary. Past performance is not indicative of future results. Your return may be affected by currency fluctuations and applicable fees and charges. Market data provided by London Stock Exchange, through Infront. Not tax advice. Tax treatment is subject to individual circumstances and may change. Assumes any applicable tax allowances have been used. Get advice if you're unsure how this applies to you. ### Gilts - Commission-free: No fees for personal accounts to buy, hold or sell Gilts. If you buy with GBP, there’s also no FX fees. - No Capital Gains Tax: Gilts are free of Capital Gains Tax for UK individual investors, the coupon payments are taxed as income. - Backed by HM Treasury: Considered low-risk as the UK Government has [never failed](https://www.dmo.gov.uk/responsibilities/gilt-market/about-gilts/#:~:text=The%20term%20%E2%80%9Cgilt%E2%80%9D%20or%20%E2%80%9C) to make payments on Gilts. ## The return of a gilt at your tax rate Here’s what a savings account or fully taxable investment would need to pay to match a Gilt’s return at maturity. Forecasts are not a reliable indicator of future performance. Illustration only. Calculation is based on the selected tax band and assumes purchase at the current dirty price, holding until maturity, the UK government makes every payment in full and on schedule, and coupon payments are reinvested at the same yield-to-maturity. Not tax advice. Tax treatment is subject to individual circumstances and may change. Assumes any applicable tax allowances have been used. No order fee for individual investors, businesses pay £1. FX fee applies when buying in a currency not GBP. ## Fee-free Gilt investing - Gilt availability - Gilt order fees (GBP): per order, for individual investors - Monthly fee Data accurate as of 28th September 2026. Trading 212: Based on their [Invest fees page](https://www.trading212.com/terms/invest). Trading 212 do not offer individual gilts. UK government bond exposure is only available through gilt ETFs. Hargreaves Lansdown: Based on their [share dealing charges](https://www.hl.co.uk/shares/share-dealing/dealing-charges). Gilts are charged at the same rate as shares, so dealing costs depend on the number of trades made in the previous month. The standard online dealing charge is £6.95 per trade for up to 19 trades in the previous month and £3.95 per trade for 20 or more trades. Gilts and bonds are charged at 0.35% per year, capped at £12.50 per month (£150 per account). Interactive Investor: Based on their [pricing plans page](https://www.ii.co.uk/our-charges). II offer 3 different plans; Core, Plus and Premium. There is a portfolio limit of £100k for Core. The table shows the range across these 3 plans. Gilts are dealt at the UK share rate, so £3.99 in Core and Plus and £2.99 in Premium. AJ Bell: Based on their [Dealing account](https://www.ajbell.co.uk/dealing-account/charges) and [Stocks & Shares ISA](https://www.ajbell.co.uk/isa/stocks-shares-isa/charges) charges, which are the same. AJ Bell charge gilts at the same rate as ETFs and stocks, based on trades in the previous month. If you had more than 10 share deals in the previous month then the £5.00 charged is reduced to £3.50. Gilts and bonds are charged at 0.25% per year, capped at £3.50 per month (£42 per account). ## Gilts on Lightyear Browse by coupon or maturity. ### Low-coupon Less coupon, less tax ### High-coupon Higher coupon, higher interest ### Short-maturity Shorter maturity, less exposure ## Protection and regulation Trusting us with your investments is something we don’t take for granted. ### Regulated and insured - Regulated by the FCA: We're authorised and regulated by the Financial Conduct Authority ([FRN 987226](https://register.fca.org.uk/s/firm?id=0014G000034WTPOQA4)). - FSCS protection: Lightyear is protected by the Financial Services Compensation Scheme (FSCS). FSCS deposit protection applies to client money only where held with UK banks, not where held in QMMFs. [Learn more here](/help/deposits-conversions-and-withdrawals/how-are-my-assets-protected). ### Safeguarding your assets - We safeguard your cash: Customer funds are held in a mix of Citibank and NatWest bank deposits and AAA-rated Qualifying Money Market Funds. Your money is always kept separate from ours. FSCS protection applies to client money only where held with UK banks, not where held in QMMFs. [Learn more here](/help/deposits-conversions-and-withdrawals/how-are-my-assets-protected). - Your assets are yours, no one else's: You are the beneficial owner of all your investments, and your assets are held in separate accounts. Your assets can't be touched by our creditors and in the unlikely event of Lightyear's insolvency, everything is returned to you. ### What is a gilt? Gilts are UK government bonds issued by Debt Management Office (DMO) on behalf of HM Treasury. Gilts pay a fixed interest payment (coupon), with the face value of the gilt earned on a set date. ### How does the tax efficiency on gilts work? A gilt gives you two types of return, taxed differently. The coupon, your fixed interest payment, is taxed as income. The potential capital gain, meaning the difference between what you paid and the nominal face value you get back at maturity, is exempt from Capital Gains Tax for UK individual investors, even beyond an ISA. That means a low coupon gilt bought at a discount delivers a tax-efficient return well past your £20,000 ISA allowance. Because of the tax treatment, low coupon gilts could deliver a tax advantaged gain for investors within higher income tax brackets. For businesses, both income and gains are taxed under standard corporation tax rules instead. This is not tax advice, and tax treatment depends on your personal circumstances. Keep in mind that tax treatment depends on your personal circumstances and may change in future. Lightyear does not provide tax advice. Get professional advice if you're unsure how this applies to you. ### How are gilt prices quoted? On Lightyear, gilt prices are quoted per £1 of nominal value. As an example, a clean price of £0.92 means you pay £0.92 now for every £1 of face value you'll get back at maturity. Alternatively, a dirty price of £1.20 means you pay £1.20 now for every £1 or face value you'll get at maturity With other brokers, you might see the same gilt quoted per £100 of nominal value instead (£92 rather than £0.92). The two prices are identical, just scaled differently. The price reflects the gilt's current market value and moves hand in hand with market conditions. A clean price means the bond's price excluding accrued interest and that's the one typically quoted for standard market comparisons. A dirty price is the total price you pay at purchase, which includes accrued interest that has built up since the last coupon payment. ### What happens if I sell a gilt before it matures? Gilts trade on the open market, so you can sell them whenever. If selling before maturity, you'll get whatever the market price is at that time, which can be higher or lower than what you paid. Hold to maturity, and you get back the full face value (assuming the UK government does not default). ### Can businesses invest in gilts? Yes, gilts are available on Lightyear business accounts too for an order fee of £1. While businesses don’t don't benefit from the Capital Gains Tax exemption as individual investors do (gains and income are taxed under standard corporation tax rules for businesses), gilts can be a useful asset to earn low-risk, fixed income timed to the company’s needs. Remember to always only invest excess cash. --- Canonical: https://lightyear.com/en-gb/gilts