Professional Documents
Culture Documents
Contents
Introduction .................................................................................................2 Foreword by the Chief Executive, Robert Stheeman......................................................................................3 Recent developments in the gilts market ............................4 Objectives of UK Government debt management...................................................................................6 Why the UK Government issues gilts .....................................7 Future financing projections ..........................................................8 Gilts market turnover ...........................................................................9 Gilts market operations Gilt auctions .....................................................................................15 Conversion offers ...........................................................................16 Switch auctions .............................................................................16 Reverse auctions ............................................................................16 Tap issues ...........................................................................................16 Different types of gilts: Conventional ...................................................................................10 Index-linked .......................................................................................11 New Index-linked ..........................................................................12 Double-dated...................................................................................14 Undated ..............................................................................................14 Annexes A. Gilts in issue at 31 March 2005 ..................................20 B. List of GEMMs........................................................................22 C. Taxation........................................................................................23 D. Gilt strips ....................................................................................24 E. Contacts .......................................................................................26 Gilt-edged market makers (GEMMs) ...................................17 Gilts market trading conventions and registration ...18 Settlement of gilt trading CRESTCo (Euroclear) ....19 Short-term debt instruments: Treasury bills .....................19
HM Treasury
UK GOVERNMENT SECURITIES
This brochure is intended to help those who have an interest in investing in gilts and would like to know more about the essential features of the instruments. It does not constitute an offer to buy or sell securities, nor does it offer investment advice. The UK Debt Management Office (DMO) has tried to ensure that the legal and factual information is accurate, but this brochure cannot be a comprehensive statement of all the intricacies of law and practice relating to gilts, nor can it take account of the circumstances of every investor. Therefore, reliance should not be placed on the brochure: investors who want advice on which gilt or other investment may be best suited to them, or on trading strategies, should consult a professional advisor. Except where specifically indicated, the brochure describes the position as at 31 March 2005. The reader should not assume that anything described in it is still accurate at a later date.
As gilts are marketable securities, their market value may go down as well as up. The DMO issues gilts to the market on behalf of the Government of the United Kingdom, and holds gilts itself for market management purposes. The DMO does not in any way guarantee the liabilities of the financial or commercial institutions referred to in this brochure.
UK GOVERNMENT SECURITIES
This brochure is intended to introduce the UK gilts market to those thinking of investing in UK Government securities. Although the gilts market can trace its ancestry back to the Seventeenth Century, the procedures for debt issuance, debt management and the resultant features of the gilt portfolio have been transformed into a modern market over the past decade. It continues to be denominated in sterling and as such offers a viable alternative to the US dollar and euro bond markets. The UK gilts market currently makes up some 5% of international government bond indices1. In our financing remit for 2005-06, plans to issue ultra-long 50-year gilts were announced. The first auction of a new 2055 maturity gilt was successfully carried out on 26 May 2005. The UK last issued a 50-year gilt in 1960. Ultra-long indexlinked issuance may follow later in this financial year. Any new index-linked gilts will use a 3-month indexation lag, in line with international best practice. The UK operates a highly predictable and transparent debt management and issuance regime with gilt auction dates published up to a year in advance - the longest period of pre-commitment internationally. Gilt sales have been rising steadily over the past few years from 26.3 billion in 2002-03 to 50.1 billion in 2004-05, and plans of 51.1 billion in 2005-06. Forecasts indicate that these relatively high levels are set to continue. Partly as a consequence of this, turnover in the gilts market is rising rapidly as outright issuance rises - average daily turnover has risen from 8.7 billion in 2002-03, to 11.5 billion in 2003-04 and 12.8 billion in 2004-05 - all reflecting increased liquidity in the market. I hope this brochure is seen as a valuable addition to the range of publications available on UK Government securities. Please contact the DMO or access our website www.dmo.gov.uk if you require further information. Robert Stheeman, Chief Executive June 2005
UK GOVERNMENT SECURITIES
Since April 1998, gilts have been issued by the UK Debt Management Office (DMO), an Executive Agency of HM Treasury2. The reorganisation followed the transfer of operational responsibility for setting official UK interest rates from HM Treasury to the Bank of England in May 1997. Financing plans are published a year ahead in the DMOs remit from HM Treasury. The financing remit includes the breakdown between conventional and index-linked gilt sales, the maturity split within conventional sales and the dates and types of auctions. Plans to recommence issuing ultra-long gilts (up to approx 50-year maturity) in both conventional and index-linked formats were announced in March 2005. A new 50-year conventional gilt was auctioned on 26 May. All new index-linked gilts will have a 3-month indexation lag. Auctions remain the primary means of issuing gilts, but in March 2005 it was announced that new ultra-long gilts may be issued initially by syndication in circumstances where HM Treasury was satisfied that to do so would minimise cost and risks. The DMO retains the ability to issue gilts in smaller quantities (by tap) at short notice, but only for the purposes of market
The Bank of England had previously been responsible for issuing gilts on behalf of HM Treasury.
UK GOVERNMENT SECURITIES
management. All scheduled issuance of conventional gilts has been by auction since April 1996 and of indexlinked gilts since November 1998. In order to enhance market liquidity, the DMO has directed conventional gilt issuance to building up large benchmark issues. This has resulted in fewer gilts but of larger size. The number of conventional gilts3 in issue fell from 79 at end-March 1992 to 42 by-end March 2005 (of which 13 were small rump gilts for which market-making obligations are relaxed and for which the DMO is prepared to bid a price). The gilt portfolio has become more concentrated in larger individual issues. In 1992 the largest conventional gilt had 4.9 billion (nominal) in issue and the average size of non-rump gilts was 1.9 billion (nominal). At end-March 2005 there were 21 conventional gilts with over 5 billion in issue and 16 with 10 billion or more in issue. The average size of the largest 20 conventional gilts was 11.8 billion. The proportion of index-linked gilts in the portfolio has risen steadily since their launch in 1981, with the nominal uplifted amount, standing at 88.3 billion (24.8% of the gilt portfolio) at end-March 2005 (the largest proportion
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of any major government bond issuer). At end-March 2005 the nominal value of the gilt portfolio was 355.55 billion4 with a market value of 387.08 billion. Gilts accounted some 95% of the UK Governments marketable sterling debt at that time5. The list of gilts in issue at March 2005 appears in Annex A. In December 2004, Computershare Investor Services plc succeeded the Bank of England as Registrar of gilts. This followed a review of Government debt management arrangements which concluded that the private sector would be better placed to provide any future benefits of economies of scale for this service.
Including undated gilts Including index-linked uplift. 5 The remaining 5.5% (20.5 billion) was accounted for by Treasury bills (1-, 3- and 6-month maturity paper).
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UK GOVERNMENT SECURITIES
UK GOVERNMENT SECURITIES
Table 1: CGNCRs from 1998-99 to 2005-06 CGNCR bn 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 forecast -4.6 -9.1 -35.3 2.8 21.6 39.4 38.6 40.2
UK GOVERNMENT SECURITIES
Gross issuance (projection 05-06 onwards) bn 70 Net issuance (projection 05-06 onwards) Net debt/GDP% (projection 05-06 onwards)
60
50
Table 2: Illustrative financing projections (figures may not sum due to rounding)
40
2005-06 40 15 52
2006-07 34 30 64
2007-08 32 29 61
2008-09 30 15 45
2009-10 32 16 48
10 30
20
*2005-06 reflects lower CGNCR outturn from 2004-05. Indicative gross financing requirements 2006-07 onwards.
-10 1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 200991 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
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UK GOVERNMENT SECURITIES
Turnover was heavily weighted towards both shorter and longer-term maturities, with the 7-10-year maturity band most actively traded. Long-dated maturities were the second most actively traded sector (see Chart 3).
The turnover ratio for 2004-05 equals the aggregate turnover relative to the market value of the portfolio at the start of the financial year.
3 2
2 1 0
1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05
5.0
0.0
UK GOVERNMENT SECURITIES
Conventional gilts
The gilts market has a number of different securities with different features. Conventional gilts Index-linked gilts Double-dated gilts Undated gilts
Only the first two of these are currently issued for financing purposes.
Conventional gilts
Conventional gilts are the simplest form of government bond and constitute the largest share of liabilities in the UK Governments portfolio. At end-March 2005, conventional gilts comprised 75.2% of the gilt portfolio (by nominal value, including index-linked uplift within the overall portfolio). A conventional gilt is a liability of the UK Government which guarantees to pay the holder of the gilt a fixed cash payment (coupon) every six months until the maturity date, at which point the holder receives the final coupon payment and the return of the principal. The prices of conventional gilts are quoted in terms of 100 principal. A conventional gilt is denoted by its coupon rate and maturity (e.g. 5% Treasury Stock 2014). The coupon rate usually reflects the market interest rate at the time of the first issue of the gilt. Consequently there is a wide range of coupon rates available in the market at any one time, reflecting how rates of borrowing have fluctuated in the past. The coupon indicates the cash payment per 100 nominal that the holder will receive per year. This payment is made
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in two equal semi-annual payments on fixed dates six months apart (these payments are rolled forward to the next business day if they fall on a non-business day). Conventional gilts also have a specific maturity date. In the case of 5% Treasury Stock 2014 the principal is due to be repaid to investors on 7 September 2014 . In recent years the Government has concentrated issuance of conventional gilts around the 5-, 10- and 30-year maturity areas. However, in March 2005 the Government announced plans to issue new ultra-long circa 50-year maturity gilts in both conventional and index-linked formats.
7
In recent years, conventional gilts have been issued by the DMO with aligned coupon dates (7 March/7 September and 7 June/7 December). This is to permit fungibility between the individual coupon strips from different bonds (see Annex D). For some time new conventional gilts have been referred to as Treasury Stock, but from 2005-06 all new gilts will be referred to as Treasury Gilts. Some old gilts are referred to as Conversion Stock or Exchequer Stock. The names are of no significance so far as the underlying obligation to repay is concerned all are obligations of HM Treasury.
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UK GOVERNMENT SECURITIES
Index-linked gilts
Index-linked gilts
Index-linked gilts (IGs) accounted for 24.8% of the Governments gilt portfolio (including the inflation uplift) at end-March 2005. In March 2005 the Government announced that any new index-linked gilts would be issued with a three month indexation lag (as opposed to the current eight-month lag). This move brings the UK into line with international best practice in respect of index-linked design (see page 12). The UK was one of the earliest developed economies to issue index-linked bonds for institutional investors, with the first issue being in 1981. Since then it has issued nineteen different index-linked gilts of which nine have since matured. As with conventional gilts, the coupon on an index-linked gilt reflects borrowing rates available at the time of first issue. However, as index-linked coupons reflect the real borrowing rate for the Government there is a much smaller variation in index-linked coupons, reflecting the smaller variation in real yields over time. Index-linked gilts differ from conventional gilts in that the semi-annual coupon payments and the principal are adjusted in line with the General Index of Retail Prices in the UK (also known as the RPI). Both the coupons and the principal on redemption paid on these gilts are adjusted to take account of accrued inflation since the gilt was first issued. Each coupon payable on index-linked gilts consists of two elements: half the annual real coupon. The real coupon is quoted in the gilts title and is fixed (e.g. 21/2% Index-linked Treasury Stock 2009 pays a real coupon of 11/4% twice a year); an adjustment factor applied to the real coupon payment to take account of the change in the RPI since the gilt was first issued.
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UK GOVERNMENT SECURITIES
Index-linked gilts
New index-linked gilts
New index-linked gilts which can be issued from the second quarter of 2005-06 will be linked to the RPI (as with existing instruments). However, the new design of index-linked gilt employs the three-month indexation lag first used in the Canadian Real Return Bond market and not the eight-month lag methodology used for existing index-linked gilts. The indexation is also applied in a significantly different way (see below). In addition, new index-linked gilts are designed to trade on a real clean price basis. As a result, the effect of inflation is stripped out of the price of the new gilts for trading purposes, although it is included when such trades are settled. Indexation methodology An Index Ratio is applied to calculate the coupon payments, the redemption payment and accrued interest. The index ratio for a gilt measures the growth in the RPI since it was first issued. For a given date it is defined as the ratio of the reference RPI applicable to that date divided by the reference RPI applicable to the original issuance date of the gilt (rounded to the nearest 5th decimal place). The reference RPI for the first calendar day of any month is the RPI for the month three months previously (e.g. the reference RPI for 1 June is the RPI for March). The reference RPI for any other day in a month is calculated by linear interpolation between the reference RPI applicable to the first calendar day of the month in which the day falls and the reference RPI applicable to the first calendar day of the month immediately following. Interpolated values should be rounded to the nearest 5th decimal place. Once new index-linked gilts have been issued, daily index ratios and reference RPIs will be published on the DMO website www.dmo.gov.uk following the publication each month of the RPI. For more details about these calculations see Annex B of the third edition of the DMO publication "Formulae for Calculating Gilt Prices from Yields" available on the DMO website at www.dmo.gov.uk/gilts/public/technical/ yldeqns.pdf. This publication also includes all relevant technical details for new (and existing) index-linked gilts. Price features Index-linked gilts with a three-month lag trade and are issued on the basis of the Real Clean Price per 100 nominal. The Inflation-adjusted Clean Price per 100 nominal on a given day is calculated by multiplying the Real Clean Price by the Index-Ratio for the day in question8. The Inflation-adjusted Dirty Price per 100 nominal on a given day is calculated by adding the Inflation-adjusted Accrued Interest9 to the Inflation-adjusted Clean Price.
8 9
This amount is left unrounded. Calculated by multiplying the Real Accrued Interest amount by the Index Ration for the day in question.
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UK GOVERNMENT SECURITIES
Index-linked gilts
Eight-month indexation lag instruments
To calculate the inflation adjustment two RPI figures are required - that applicable to the gilt when it was originally issued and that relating to the current interest payment. In each case the RPI figures used are those applicable eight months before the relevant dates (e.g. for a November coupon date the previous March RPI figure is used). This indexation lag is required so that the size of each forthcoming interest payment is known at the start of the coupon period, thereby allowing the accrued interest to be calculated. For index-linked gilts whose first issue date is before July 2002, the Bank of England performs the function of calculating and publishing the uplifted coupons on each index-linked gilt following the release of each RPI figure which is relevant to it. For later indexlinked gilts, the DMO performs this function; the first of which was 2% Index-linked Treasury Stock 2035, first issued on 11 July 2002. The uplifted redemption payment is calculated and published similarly, following the release of the RPI figure relating to eight months before the month of redemption. The UK has no current plans to issue index-linked gilts linked to the Consumer Price Index (CPI, formerly called HICP) despite this measure of inflation being substituted for RPIX for inflation targeting purposes by the UK authorities. The RPI will continue to be published and payments for index-linked gilts will continue to be linked to the RPI.
The Swiss Re building, popularly known as The Gerkin.
If, in the future, the DMO were to consider issuing new index-linked gilts linked to CPI it would consult market participants in a transparent way before making such a decision. More details on the mechanics of index-linked gilts are included in the DMOs publication Gilts: An Investors Guide. Also available on the DMO website is an indexlinked gilt cash flow calculation document at www.dmo.gov.uk/gilts/indexlink/uk/igcalc.pdf
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UK GOVERNMENT SECURITIES
Undated gilts
There are currently eight undated gilts in issue (comprising just 0.8% of the gilt portfolio). These are the oldest remaining gilts in the portfolio, some dating back to the nineteenth century. The redemption of these bonds is at the discretion of the Government, but because of their age, they all have low coupons and so there is little current incentive for the Government to redeem them. Most undated gilts pay interest twice a year; however, some10 pay interest four times a year.
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UK GOVERNMENT SECURITIES
Gilt Auctions
The move to reliance on a pre-announced auction schedule reflects the UK Governments commitment to transparency and predictability in gilt issuance. Transparency and predictability should reduce the amount the Government is charged for market uncertainty (the supply uncertainty premium). Predictability should also allow investors to plan and invest more efficiently, in the knowledge of when and in which maturity band supply will occur.
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UK GOVERNMENT SECURITIES
Reverse auctions
Reverse auctions were originally held in the late 1980s and were re-introduced by the DMO in 2000 as part of the strategy for dealing with the large financial surplus in 2000-01. The buy-back programme added to the financing requirement in 2000-01 and allowed the DMO to add to gross issuance to help maintain liquidity in the market at a time of strong demand.
Conversion offers
From time to time the DMO offers holders of gilts the opportunity to convert their holding of one gilt into another gilt at a fixed rate of conversion related to the market prices of each gilt. For the investor, conversions offer the prospect of transferring out of a gilt that may trade infrequently into a more liquid benchmark gilt.
Switch auctions
The DMO introduced conventional gilt switch auctions in October 1999. They were designed as a further tool to build up benchmark gilts, in addition to conversion offers at a time of low outright issuance, by switching a proportion of a source gilt into a new current coupon gilt. New gilts are not launched by switch auctions they will have been auctioned outright at least once prior to any
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UK GOVERNMENT SECURITIES
The privileges of GEMM status include: exclusive rights to competitive telephone bidding at gilt auctions and other operations, either for the GEMMs own account, or on behalf of clients; the right to an exclusive non-competitive auction allocation (up to 10% aggregate total for both conventional and index-linked); the exclusive facility to trade as a counterparty of the DMO in any of its secondary market operations, including any transactions undertaken by the DMO for market management purposes; exclusive ability to strip gilts (see Annex D); an invitation to a quarterly consultation meeting with the DMO, allowing the GEMMs to advise on the gilts to be scheduled for auction in the following quarter, and to discuss other market-related issues; exclusive access to gilt Inter-Dealer Broker (IDB) screens.
The obligations of a GEMM include: to make effective two-way prices to customers on demand in all non-rump gilts in all market conditions, thereby providing market liquidity for customers wishing to trade; to participate actively in the DMOs gilt issuance programme, broadly speaking by bidding competitively in all auctions and achieving allocations commensurate with their secondary market share; to provide information to the DMO on market conditions, the GEMMs positions and turnover; and to provide closing prices of gilts to the DMO which collates the information and publishes reference prices on the wire services and on its website on behalf of the GEMMs.
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UK GOVERNMENT SECURITIES
The Lloyds Building - One of the Citys most distinctive works of architecture.
In December 2004, Computershare Investor Services plc (CIS) succeeded the Bank of England as Gilts Registrar. CIS maintains the Register of holdings of gilts under a contract from HM Treasury (and administered by the DMO).
12 13 14
A "clean" price is the price of a gilt which excludes accrued interest or rebate interest. Before 1 November 1998 gilts were priced and traded in 1/32nds. Entry of the name of the holder in a register confirms title.
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UK GOVERNMENT SECURITIES
CRESTCo members include GEMMs and specialist financial institutions, broking intermediaries and custodians acting on behalf of institutional investors (such as insurance companies and pension funds). Members also include nominee companies, which allow indirect participation in CRESTCo for nominee account holders, and individuals. CRESTCo is part of the Euroclear group, which, through Euroclear Bank, provides settlement services to 30 bond and 25 equity markets internationally.
Those banks which provide payment facilities to CRESTCo members through CREST.
The Real-time Gross Settlement payment system operated by the Bank of England.
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UK GOVERNMENT SECURITIES
Shorts: (maturity up to 7 years) 91/2% Conversion 2005 81/2% Treasury 2005 73/4% Treasury 2006 71/2% Treasury 2006 41/2% Treasury 2007 81/2% Treasury 2007 71/4% Treasury 2007 5% Treasury 2008 51/2% Treasury 2008/2012 4% Treasury 2009 53/4% Treasury 2009 43/4% Treasury 2010 61/4% Treasury 2010 9% Conversion 2011 73/4% Treasury 2012/2015 5% Treasury 2012 Mediums: (maturity 7-15 years) 8% Treasury 2013 5% Treasury 2014 43/4% Treasury 2015 8% Treasury 2015 83/4% Treasury 2017 43/4% Treasury 2020 Longs: (maturity over 15 years) 8% Treasury 2021 5% Treasury 2025 6% Treasury 2028 41/4% Treasury 2032 41/4% Treasury 2036 43/4% Treasury 2038 31/2% War
18-Apr-05 7-Dec-05 8-Sep-06 7-Dec-06 7-Mar-07 16-Jul-07 7-Dec-07 7-Mar-08 10-Sep-08 7-Mar-09 7-Dec-09 7-Jun-10 25-Nov-10 12-Jul-11 26-Jan-12 7-Mar-12 27-Sep-13 7-Sep-14 7-Sep-15 7-Dec-15 25-Aug-17 7-Mar-20 7-Jun-21 7-Mar-25 7-Dec-28 7-Jun-32 7-Mar-36 7-Dec-38 Undated
18 Apr/Oct 7 Jun/Dec 8 Mar/Sep 7 Jun/Dec 7 Mar/Sep 16 Jan/Jul 7 Jun/Dec 7 Mar/ Sep 10 Mar/Sep 7 Mar/Sep 7 Jun/Dec 7 Jun/Dec 25 May/Nov 12 Jan/Jul 26 Jan/Jul 7 Mar/ Sep 27 Mar/Sep 7 Mar/Sep 7 Mar/Sep 7 Jun/Dec 25 Feb/Aug 7 Mar/Sep 7 Jun/Dec 7 Mar/Sep 7 Jun/Dec 7 Jun/Dec 7 Mar/Sep 7 Jun/Dec 1 Jun/Dec
4,469 10,486 3,955 11,807 11,500 4,638 11,103 14,221 1,026 13,250 11,437 9,250 4,958 5,396 805 13,346 6,181 13,050 13,000 7,377 7,751 2,500 16,741 12,922 11,756 13,829 12,250 14,250 1,939
154 172 74 131 30 7 110 1 203 2 203 167 218 53 218 593 161 116 -
95 310 440 276 27 371 244 166 182 22 359 11 477 205 339 235 386 58 8 172 380 346 177 309 251 3 7 31
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UK GOVERNMENT SECURITIES
Index-linked Gilts
Base RPI*
Redemption Date
Dividend Dates
Nominal including Central Government inflation uplift Holdings (DMO & CRND) (mn) 5,477 7,348 10,880 13,396 15,575 12,537 10,999 5,421 6,645 37 74 70 105 170 68 112 72 2 0 0 2 0.5 9 0 0.1 0.1 2 5 0 0 0
Index-linked Gilts 2% I-L Treasury 2006 274.1 19-Jul-06 19 Jan/Jul 21/2% I-L Treasury 2009 310.7 20-May-09 20 May/Nov 21/2% I-L Treasury 2011 294.1 23-Aug-11 23 Feb/Aug 21/2% I-L Treasury 2013 351.9 16-Aug-13 16 Feb/Aug 21/2% I-L Treasury 2016 322.0 26-Jul-16 26 Jan/Jul 21/2% I-L Treasury 2020 327.3 16-Apr-20 16 Apr/Oct 21/2% I-L Treasury 2024 385.3 17-Jul-24 17 Jan/Jul 41/8% I-L Treasury 2030 135.1 22-Jul-30 22 Jan/Jul 2% I-L Treasury 2035 173.6 26-Apr-35 26 Jan/Jul Rump Gilts (Rump gilts are not available for purchase) 101/2% Exchequer 2005 20-Sep-05 20 Mar/Sep 93/4% Conversion 2006 15-Nov-06 15 May/Nov 9% Treasury 2008 13-Oct-08 13 Apr/Oct 8% Treasury 2009 25-Sep-09 25 Mar/Sep 9% Treasury 2012 6-Aug-12 6 Feb/Aug 12% Exchequer 2013/2017 12-Dec-13 12 Jun/Dec 21/2% Treasury Undated 1 Apr/Oct 4% Consolidated Undated 1 Feb/Aug 21/2% Consolidated Undated 5 Jan/Apr/Jul/Oct 31/2% Conversion Undated 1 Apr/Oct 3% Treasury Undated 5 Apr/Oct 21/2% Annuities Undated 5 Jan/Apr/Jul/Oct 23/4% Annuities Undated 5 Jan/Apr/Jul/Oct
2,037 3,098 4,342 6,397 6,805 5,568 5,751 3,921 6,175 2 1 528 256 245 19 468 287 205 19 45 2 0.7
*Base RPI for all index-linked gilts from 2006 to 2024 maturities RPI Jan 1974=100. For the 2030 and 2035 maturities Base RPI Jan 1987=100. It is assumed that double-dated gilts (which have not been called) currently trading above par will be redeemed at the first maturity date.
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UK GOVERNMENT SECURITIES
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UK GOVERNMENT SECURITIES
ANNEX C. Taxation
Taxation
The main features that apply to overseas investors are: Overseas investors are in most cases exempt from any UK tax on gilts. Gilts held on FOTRA (Free of Tax to Residents Abroad) terms, and the interest on them, are generally exempt from tax if they are held by persons who are not ordinarily resident in the UK. The precise terms depend on the prospectus under which the gilts were issued; but under the most recent version (post-1996), income on FOTRA gilts is exempt from tax if the holder is nonresident, unless the income is received as part of a trade conducted in the UK. In April 1998, all existing nonFOTRA gilts were made FOTRA gilts on post-1996 terms. Further information is available on the HM Revenue & Customs website www.hmrc.gov.uk
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UK GOVERNMENT SECURITIES
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UK GOVERNMENT SECURITIES
Table 5: Strippable gilts and amounts held in stripped form (end-March 2005) Strippable gilts outstanding Nominal amount in issue (mn) Gilt 7 June / 7 December series 81/2% Treasury Stock 2005 71/2% Treasury Stock 2006 71/4% Treasury Stock 2007 53/4% Treasury Stock 2009 43/4% Treasury Stock 2010 8% Treasury Stock 2015 8% Treasury Stock 2021 6% Treasury Stock 2028 41/4% Treasury Stock 2032 43/4% Treasury Stock 2038 7 March / 7 September series 41/2% Treasury Stock 2007 5% Treasury Stock 2008 4% Treasury Stock 2009 5% Treasury Stock 2012 5% Treasury Stock 2014 43/4% Treasury Stock 2015 5% Treasury Stock 2025 41/4% Treasury Stock 2036 Nominal amount held in stripped form (mn) Percentage held in stripped form (%)
10,486 11,807 11,103 11,437 9,250 7,377 16,741 11,756 13,829 14,250 118,036 11,500 14,221 13,250 13,346 13,050 13,000 12,922 12,250 103,540 221,567
154 172 131 110 1 167 218 218 593 116 1,880 74 30 7 203 2 203 53 161 733 2,613
1.47 1.46 1.18 0.96 0.01 2.26 1.30 1.85 4.29 0.81 1.59 0.64 0.21 0.05 1.52 0.02 1.56 0.41 1.31 0.71 1.18
TOTAL
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UK GOVERNMENT SECURITIES
Annex E. Contacts
Name
Robert Stheeman Jo Whelan Jim Juffs Arnaud Mars Martin Duffell Nick Fisher Myrvin Anthony Steve Whiting Sarah Ellis Mark Deacon Gurminder Bhachu James Knight
Position
Chief Executive Deputy Chief Executive Chief Operating Officer Head of Portfolio Strategy Head of Gilt Dealing Head of Cash Dealing Head of Economic Research Press Officer Assistant Press Officer Quantitative Analyst/Web Manager Quantitative Analyst Economist
Telephone No.
020 7862 6533 020 7862 6531 020 7862 6520 020 7862 6615 020 7862 6517 020 7862 6518 020 7862 6581 020 7862 6532 020 7862 6525 020 7862 6516 020 7862 6512 020 7862 6571
Email
robert.stheeman@dmo.gsi.gov.uk jo.whelan@dmo.gsi.gov.uk jim.juffs@dmo.gsi.gov.uk arnaud.mares@dmo.gsi.gov.uk martin.duffell@dmo.gsi.gov.uk nick.fisher@dmo.gsi.gov.uk myrvin.anthony@dmo.gsi.gov.uk steve.whiting@dmo.gsi.gov.uk sarah.ellis@dmo.gsi.gov.uk mark.deacon@dmo.gsi.gov.uk gurminder.bhachu@dmo.gsi.gov.uk james.knight@dmo.gsi.gov.uk
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UK GOVERNMENT SECURITIES
Annex E. Contacts
DMO wire service pages Information
Index Announcements Shop window general info Shop window 1 Benchmark prices GEMMA ref prices (Conventionals) GEMMA ref prices (I-L) GEMMA ref prices (Strips) Cash announcements T-bill tender information Ad-hoc tender information T-bill reference prices
Reuters
DMO/INDEX DMO/GILTS1 to 9 DMO/GILTS10 DMO/GILTS11 DMO/BENCH1 GEMMA01 to 04 GEMMA08 GEMMA13 to 22 DMO/CASH01 DMO/CASH11 DMO/CASH16 DMO/TBILLS01
Bridge
K:2366 K:3327-K:3335 K:3336 K:3337 K:3338 K:3358-K:3361 K:3365 K:3370-K:3379 K:2367 K:2377 K:2382 K:2387
Moneyline Telerate
21290 22550 to 22556 6517 6518 22557 47216 to 47219 47223 21291 to 21300 15700 to 15709 15710 to 15711 15715 to 15716 15720 to 15724
Topic
44799 44700 to 44712 44717 44718 44720 to 44721 44800 to 44802 44805 44850 to 44864 44660 to 44669 44670 to 44671 44675 to 44676 44900 to 44909
Bloomberg
DMO<GO> DMO1<GO> DMO3<GO> DMO3<GO> DMO2<GO> DMO5<GO> DMO5<GO> DMO6<GO> DMO8<GO> DMO9<GO> DMO10<GO> DMO11<GO>
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