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Gilt Strips

Continuing our series on legal and other concepts aimed at those working in tax, Vimal Tilakapala, Senior Associate, Tax Department, Allen & Overy, London, discusses gilt strips

 
Continuing our series on legal and other concepts aimed at those working in tax Vimal Tilakapala Senior Associate Tax Department Allen & Overy London discusses gilt strips
 
'Gilts' are sterling-denominated interest-bearing bonds issued by HM Treasury and listed on the London Stock Exchange.
 
There are a several types of gilts. These include 'conventional' 'index-linked' 'undated' and 'double-dated' gilts. 'Conventional' gilts are the simplest and most common type and are basic UK Government bonds that pay a fixed semi-annual coupon and which have a fixed redemption date. 'Index-linked' gilts differ from conventional gilts in that the coupons payable...

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