| Your income tax band | Net real yield | Savings equiv* |
|---|---|---|
| No tax | 2.548% | — |
| Basic 20% | 2.210% | — |
| Higher 40% | 1.872% | — |
| Additional 45% | 1.788% | — |
Real yields are returns above RPI inflation. The coupon (including its inflation uplift) is taxed as income; the inflation uplift on the principal is free of CGT. Figures don't include your Personal Savings Allowance. How we calculate this.
TG54 is the UK index-linked gilt "1¼% Index-linked Treasury Gilt 2054", maturing 22 November 2054. Both its coupon and its principal are uplifted by RPI inflation, so the quoted real yield of 2.548% is the return you earn on top of inflation. At its 11 Sep 2026 price of £74.01 (clean, before inflation adjustment) that is roughly a 6.05% nominal-equivalent yield if RPI averages 3.5%. The inflation uplift on the principal is free of capital gains tax; the (inflation-uplifted) coupon is taxable as income. That is index-linked gilt tax treatment in practice. Whether this beats a conventional gilt of the same maturity depends on whether RPI runs above the break-even inflation rate over its life. Note: UK index-linked gilts have no deflation floor — sustained deflation can reduce the redemption value below par.
Prices are indicative closing levels for 11 Sep 2026 and may be delayed — see the live gilt table for current figures at your tax rate. Information only, not financial advice.
Information only — not financial advice. Gilt prices are indicative from last available close (11 Sep 2026) and may be delayed. Verify before transacting. UK tax treatment may change.