Finance Websites

The current prices of all Government stock are given in the finance webpages of the serious websites together with an indication of the interest rate (though not all give the rate taking account of the capital loss or gain at redemption).

Some stock is cheaper than its nominal value because it is paying a very low rate of interest. See http://www.investmentguide.co.uk/stocgfix.htm

And some stock has no redemption date. Some UK Gov stock for example, now sells at about £97 for £100 of stock.

The Government has never fixed a date for its redemption at face value and it seems unlikely that it will do so.

Many people who bought this stock for its face value feel very upset that the Government will not repay them the face value while offering such a low rate of return. So they hang on to their stock in the hope that the Government will change its mind.

Interest is paid half yearly gross. You have to declare the interest on your tax return and it is taxable.

Bonds held for at least a year are exempt from capital gains tax.




Is this of interest - Local Authority Bonds

or Investing In Shares

Local Authority Bonds

/investments/local-authority-bonds.php... see: Local Authority Bonds