559-000 Exemption of gilts and QCBs from chargeable gains
Disposals of gilt-edged securities (gilts) or qualifying corporate bonds (QCBs) do not give rise to chargeable gains or allowable losses (TCGA 1992, s. 16(2), 115(1)(a)). In effect, therefore, gilts and QCBs are generally non-chargeable assets for capital gains purposes.
A QCB is, broadly:
(1)for corporation tax purposes in relation to accounting periods ending after 31 March 1996, any asset representing a ‘loan relationship’ of a company (TCGA 1992, s. 117(A1)); or
(2)a security which represents a normal commercial loan and which is expressed in sterling, with no provision for conversion into or redemption in another currency (TCGA 1992, s. 117(1)).