15705 Gilt-edged securities and qualifying corporate bonds
Where gilt-edged securities or qualifying corporate bonds (or options on them) are disposed of, the gain on disposal is exempt from CGT. The closing out of an option by a person entering into a reciprocal option is a disposal for this purpose. In consequence, losses accruing on disposals are not generally allowable, though a limited relief for loans may be available.
‘Gilt-edged securities’ are, for this purpose, those government securities set out in a prescribed list and any additional securities which may be specified subsequently by statutory instrument.