If you sell your Debentures at a gain (i.e. you sell them for more than they cost you to buy) you may need to consider the impact of CGT. This applies if all the gains (not just Debenture sales) you have realised in a relevant tax year are more than the annual exemption for that year — for 2019/20 that figure is £12,000. If your gains for a relevant year are more than this, you pay:

      10% of the gain if you are a Basic Rate Taxpayer;
      20% of the gain if you are a Higher Rate Taxpayer

You should also consider the impact of CGT if your Debentures are the subject of a gift or you transfer them to a bare trust. Any Debenture holder who has any doubts as to his or her CGT position should consult a professional adviser.

Please note
Tax depends on your personal circumstances and if in doubt you should seek professional advice. We cannot offer advice on tax. The tax summary we provide relates to the position of a UK resident individual taxpayer (not including trustees or personal representatives). Other categories of taxpayer should consider their own circumstances.

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