The two ways to buy gilts — on the stock exchange through a broker or platform, or at a DMO auction — and what you pay, from clean and dirty prices to dealing fees.
Two routes into gilts
- Secondary market. Most gilts are bought and sold through stockbrokers and investment platforms on the London Stock Exchange, exactly like shares. You can buy any gilt currently in issue, choose the amount you want, and pay a price set by the live market.
- Auction. When the government issues a new gilt, the UK Debt Management Office (DMO) runs an auction. Bidding gets you a gilt straight from the issuer, but auctions are occasional, competitive and usually suited to larger sums, so most private investors buy on the secondary market.
Choosing a broker or platform
Most brokers that offer UK equities can trade gilts, but not all make it easy. Look for one that lists gilts with their ISIN, lets you order in small £100 nominal amounts, and states its fees clearly: platforms typically charge a flat dealing fee per trade and some add a periodic account charge. If you want gilts inside an ISA or SIPP the platform must support that wrapper; a general dealing account is the simplest route when you do not need tax-advantaged wrapping.
What you actually pay
When you place an order you will see a clean price, an accrued-interest figure and, for an index-linked gilt, an index ratio. The cash you hand over is the dirty price — clean price plus accrued interest, scaled where relevant. Minimum order sizes are normally £100 nominal and you can build up in that step. Settlement usually follows a couple of business days later (T+1 or T+2 depending on the gilt), so keep enough cash in the account to cover the order plus fees.
After you have bought
Record the trade somewhere durable. GiltIQ's portfolio tracker keeps a private record of your gilts and values them from the latest report, and the taxable income guide explains what to declare when the coupons arrive. Gilt interest is paid gross and is usually taxable as savings income, while gains on gilts themselves are exempt from capital gains tax — the detail lives in the tax guides, and it is worth reading the intro to gilts first if the terminology is new.