What Happens When a UK Gilt Matures?
Redacción de Financial World News · Explicación educativa · Cómo obtenemos las rentabilidades
At maturity the DMO repays par (plus any index uplift for linkers). Brokers usually credit cash automatically.
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What Happens When a UK Gilt Matures — the mechanics
On the redemption date the gilt ceases to exist as a security. You receive £100 per £100 nominal for a conventional gilt, or the inflation-uplifted principal for a linker, and coupons stop.
On the redemption date CREST (or your broker’s custodian) receives £100 per £100 nominal for a conventional gilt. The line is cancelled. You should see cash, not a rolling of the position, unless you instructed a switch.
Index-linked redemption pays the inflation-uplifted principal, which can be well above 100 in RPI terms. That uplift is part of the contract, not a bonus.
If you hold in an ISA or SIPP, the cash sits in that wrapper until you reinvest. Maturity is a reinvestment decision, not a tax-free ‘win’ by itself.
Official sources (UK Gilts)
Primary statistics and prospectuses for UK Gilts are published by the issuer, not by this newsroom. The labelled links at the end of this page go to those official sites (DMO, TreasuryDirect, Finanzagentur, MEF, AFT, SNB or ECB as relevant).
Our live board is a teaching overlay: dated prints, named sources, estimated ISIN lines. It is not a replacement for the issuer’s calendar.
Puntos clave
- On the redemption date CREST (or your broker’s custodian) receives £100 per £100 nominal for a conventional gilt.
- Prices and yields change. When this site quotes them, it dates them on the live board.
- Credit of a G7 government in its own currency is not the same as a stable screen price, and not the same as a bank deposit.
FAQ
- Do I need to sell a gilt before maturity?
- No. If you hold to maturity, redemption is handled by the registrar and your broker. Selling early is optional.