Explanatory note

Section 115 of the Taxation of Chargeable Gains Act 1992 (“TCGA”) provides that gains on the disposal of “gilt-edged securities” are not subject to capital gains tax. “Gilt-edged securities” are defined by Schedule 9 to the TCGA. Schedule 9 TCGA also provides that the Treasury may make an order specifying that certain additional stocks and bonds are also to be defined as “gilt-edged securities” for the purposes of the TCGA. In the exercise of that power this Order specifies 5 securities that are to be treated as “gilt-edged securities”.

A complete list of gilts to which this and previous Orders apply may be found on the HM Revenue and Customs website (www.hmrc.gov.uk) or obtained by writing to the HM Revenue and Customs Ministerial Correspondence Unit, 1st Floor, Ferrers House, PO Box 38, Castle Meadow Road, Nottingham, NG2 1BB.