UK government bonds: how they pay, how to buy them, how they are taxed and what a gilt yields after tax for each tax band. Includes index-linked and low-coupon gilts.
5.76%: the 20-year gilt yield on 7 October 2026, the highest in Bank of England data going back to 2000. The 10-year yield, at 5.39%, is the highest since July 2007.
The right comparison is what you keep after tax, and that depends on your tax band and your Personal Savings Allowance. Then weigh deposit protection against government credit, and a fixed term against a market price.
Private investors buy gilts on the secondary market, through a platform, a broker or the DMO's own postal dealing service. Check the clean price, the accrued interest and the yield to maturity before you deal.
The right comparison is what you keep after tax, and that depends on your tax band and your Personal Savings Allowance. Then weigh deposit protection against government credit, and a fixed term against a market price.
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