How to Buy Gilts UK 2026: DMO Service, Platforms and Tax

How to Buy UK Gilts: A Beginner Guide 2026

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 7 Apr 2026

Last reviewed 12 Oct 2026

✓ Fact-checked

✓ Cited by AI assistants

What are UK gilts?

UK gilts (short for gilt-edged securities) are bonds issued by the UK government to raise money. When you buy a gilt, you lend money to the government for a fixed period and receive regular interest payments (the coupon) until the gilt matures, at which point you receive your original investment back. Gilts are considered among the safest investments available because the UK government has never defaulted on its debt.

Gilts are UK government bonds. They pay a fixed coupon (interest) every 6 months and return face value at maturity. Current 10-year gilt yields are approximately 4.3 to 4.6% (April 2026).

Types of UK gilts

Type	How it works	Best for
Conventional gilt	Fixed coupon every 6 months; face value returned at maturity	Income investors; capital preservation
Index-linked gilt	Coupon and principal adjusted for RPI inflation	Inflation protection; long-term investors
Short-dated gilt (under 5yr)	Lower yield but lower interest rate risk	Conservative investors; short-term holding
Long-dated gilt (over 15yr)	Higher yield but more sensitive to rate changes	Long-term income; pension funds

How to buy gilts in the UK

Through a stockbroker or investment platform - Hargreaves Lansdown, AJ Bell, interactive investor, and most platforms list gilts; buy them like shares using the gilt ticker
Through NS&I (for new issues) - UK Retail Gilt issues are occasionally available directly via NS&I (nsandi.com)
Through gilt ETFs - iShares UK Gilts ETF (IGLT) and Vanguard UK Gilt ETF give diversified gilt exposure without buying individual gilts
In an ISA or SIPP - gilt interest and capital gains can be sheltered from tax inside an ISA; gains on gilts outside an ISA are exempt from CGT but interest is taxable

Current gilt yields April 2026

Gilt	Maturity	Current yield (approx)
2-year gilt	2028	4.10%
5-year gilt	2031	4.25%
10-year gilt (benchmark)	2036	4.45%
20-year gilt	2046	4.75%
30-year gilt	2056	4.90%

Yields move inversely to prices. When gilt prices fall, yields rise. Yields shown are gross redemption yields - the total return if held to maturity, including both coupon payments and any price appreciation or depreciation.

Are gilts a good investment in 2026?

At yields of 4.3 to 4.6% for medium-term gilts, government bonds offer competitive returns relative to cash savings - with the added benefit of capital gain if rates fall further. For ISA investors, a gilt held to maturity effectively offers a tax-free yield above current Cash ISA rates for fixed terms. The main risk is interest rate sensitivity: if you sell before maturity and rates have risen, the gilt price will have fallen.

Verdict

Competitive vs cash for ISA investors; use ETFs for simplicity

Short-dated gilts at 4.1 to 4.3% are a credible alternative to fixed-rate savings bonds for risk-averse investors. Inside an ISA, capital gains on gilts are tax-free (though gilts are already CGT-exempt outside an ISA). A gilt ETF is simpler than buying individual gilts for most investors.

Frequently asked questions

Are UK gilts safe?

Gilts are considered one of the safest investments available in the UK - they are backed by the full faith and credit of the UK government. The risk of default is extremely low. The main investment risk is price volatility if you sell before maturity as interest rates change.

Do gilts pay dividends?

Gilts pay coupons (interest), not dividends. The coupon is a fixed percentage of the face value, paid every 6 months. For example, a 4% coupon gilt with £1,000 face value pays £20 every 6 months (£40 per year).

Are gilt gains taxable?

Capital gains on gilts are exempt from Capital Gains Tax in the UK - a significant advantage for investors in higher tax bands. Interest (coupon payments) is subject to income tax above your Personal Savings Allowance. Holding gilts inside an ISA shelters interest from income tax.

What is the minimum amount to buy gilts?

Gilts trade in face value multiples of £100. Most platforms allow you to buy a single gilt at the current market price (which may differ from face value). Some platforms have minimum order sizes of £1,000.

Buying gilts: routes and tax (checked 24 September 2026)

Item	Detail
Ways to buy	Through a stockbroker, a bank, an investment platform, or the Debt Management Office's Purchase and Sale Service
DMO Purchase and Sale Service	Execution only, run by Computershare; you must be a UK resident and join the DMO's Approved Group of Investors first
Price	You cannot set a price or a price limit when buying through the DMO service
Paying the DMO service	Investments over £1,000 on one dealing day must be paid electronically
Capital gains	Gains on gilts are exempt from Capital Gains Tax for individuals (Taxation of Chargeable Gains Act 1992, section 115)
Interest (coupons)	Taxable as savings income unless the gilt is held in an ISA or pension