Hello,
I have a very basic question to which I can't find an answer. What UK tax applies to the gains made when I buy a bond and then sell later for a higher price (or it matures)? Let's say a simple corporate bond issued by Thames Water (https://cbonds.com/bonds/286365/), bought at 97%, which matures 2 years later and I receive 100% back. Any interest paid is obviously taxable at income tax, but what about the 3% gain? Is that taxed through CGT or through income tax? And does the answer depend on whether it is:
a) a UK government bond
b) a GBP corporate bond by a UK company
c) a USD (or other currency) bond?
d) bonds bought through an ETF (eg, an ETF with US government bonds)?
Does the issue of QCB (“qualifying corporate bond”) matter for this?
Many thanks in advance,
fantavier
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