‘Government securities’ is a term we use to describe securities issued by the Treasury. These are also known as ‘gilts’. The Treasury can issue securities with the condition that they are exempt from UK taxation so long as they are in the beneficial ownership of persons who are not resident in the UK. Securities issued with this condition are known as FOTRA (free of tax to residents abroad) gilts.

Before 6 April 2013, FOTRA securities were issued with the requirement that the beneficial owner (IHTM04031) had to be ‘ordinarily resident’ outside the UK (IHTM13025). This requirement still applies to FOTRA securities acquired before that date.

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