Lightyear launched direct access to 20 conventional UK government gilts on 29 September, spanning maturities from a few months to more than 30 years. Personal accounts pay no Lightyear order fee, business accounts pay £1 per order and the minimum purchase is £10. The bonds sit alongside shares, funds and cash-management products in its UK investment service.[1][3][2]
Low headline dealing cost does not remove execution risk. Lightyear currently supports market orders only for both purchases and sales, so an instruction executes at the available market price rather than at a user-specified limit. The platform displays prices per £1 of nominal value and uses the dirty price for the actual transaction amount, meaning accrued interest is included. An FX fee can also apply when a customer buys a GBP-denominated gilt using another currency.[2]
The service combines simple access with bond-specific mechanics
Lightyear gilt terms that affect the real transaction
| Item | Published treatment | Practical implication |
|---|---|---|
| Selection | 20 conventional gilts across short and long maturities | The service is a curated inventory, not every UK government securitySource 1Source 3 |
| Order fee | Free for personal accounts; £1 for business accounts | Platform dealing cost differs by account typeSource 1Source 2 |
| Order type | Market orders only | The final price can differ from the displayed quote, particularly in a moving or thin marketSource 2 |
| Price and interest | Quoted per £1 nominal; transaction uses the dirty price including accrued interest | The cash amount is not simply clean price multiplied by face valueSource 2 |
For individuals, gains on qualifying gilts are exempt from Capital Gains Tax, while a loss on an exempt gilt cannot be used to offset unrelated gains. Coupon income is a separate matter: outside a tax-exempt account such as an ISA, it can be taxable according to the holder’s circumstances. Company holdings follow corporation-tax loan-relationship rules. The capital-gains exemption therefore should not be described as making every component of the return tax-free.[4][2]
The fixed coupon and maturity value do not make the interim market price fixed. A customer who holds to maturity expects the face value, assuming the UK government pays as scheduled, but someone selling early receives the prevailing market price. Interest-rate moves can therefore produce a gain or loss before maturity. The market-order-only design makes that distinction especially important at the point of sale.[1][2]
For an investor comparing an individual gilt with a fund or cash product, the practical comparison is the purchase yield after costs, the maturity date and the price risk if the holding must be sold early. A low minimum makes access easier; the market-order-only design leaves the execution price dependent on conditions when the order reaches the market.[1][2]
Sources & further reading
- Gilts, now on Lightyear Lightyear · 29 Sep 2026 · Accessed 30 Oct 2026
- Gilts: pricing, tax, minimum order and order types Lightyear · Accessed 30 Oct 2026
- Lightyear gilt screener Lightyear · Accessed 30 Oct 2026
- Gilt-edged securities exempt from Capital Gains Tax HM Revenue & Customs · 20 May 2014 · Accessed 30 Oct 2026