Freetrade

Both gilts and UK Treasury bills are issued by the UK government, making them low-risk investments

Both represent a form of government borrowing, where investors lend money to the government in exchange for future repayment

Both can be used to generate income for investors, although in different forms. 

- Both gilts and UK Treasury bills are issued by the UK government, making them low-risk investments
- Both are denominated in GBP
- Both represent a form of government borrowing, where investors lend money to the government in exchange for future repayment
- Both can be used to generate income for investors, although in different forms. 

Differences between gilts and UK Treasury bills: 

- Gilts: Long-term securities with maturities that can range from a few years to several decades (up to 50 years or more).
- Treasury bills: Short-term securities with maturities of one year or less (usually 1, 3, 6, or 12 months).

- Gilts: Pay regular dividends(coupons) every six months, based on a fixed percentage of the nominal value, until maturity.
- Treasury bills: Treasury bills do not pay dividends. They are zero coupon bonds.

- Gilts: Sold at market prices that can fluctuate based on interest rates and other market factors. The return is from both the dividends and the return of the principal at maturity.
- Treasury bills: The return comes from the UK government repaying the amount you originally invested, plus a fixed return after a known period.

- Gilts: Dividend payments are subject to income tax unless held in an ISA or SIPP. Capital gains from selling gilts or from gilts maturing are generally exempt from capital gains tax.
- Treasury bills: Income from Treasury bills (the difference between purchase price and maturity value) is subject to income tax, unless held in an ISA or SIPP.

- Gilts: Often used by investors seeking long-term, stable income with periodic dividend payments, or for those looking to balance long-term portfolios.
- Treasury bills: Typically used for short-term investment strategies or as a safe option for cash management.

- Gilts: Have a well-established secondary market and are actively traded on the London Stock Exchange.

- Maturity:
 - Gilts: Long-term securities with maturities that can range from a few years to several decades (up to 50 years or more).
 - Treasury bills: Short-term securities with maturities of one year or less (usually 1, 3, 6, or 12 months).
- Dividend payments:
 - Gilts: Pay regular dividends(coupons) every six months, based on a fixed percentage of the nominal value, until maturity.
 - Treasury bills: Treasury bills do not pay dividends. They are zero coupon bonds.
- Price Behavior:
 - Gilts: Sold at market prices that can fluctuate based on interest rates and other market factors. The return is from both the dividends and the return of the principal at maturity.
 - Treasury bills: The return comes from the UK government repaying the amount you originally invested, plus a fixed return after a known period. 
- Tax:
 - Gilts: Dividend payments are subject to income tax unless held in an ISA or SIPP. Capital gains from selling gilts or from gilts maturing are generally exempt from capital gains tax.
 - Treasury bills: Income from Treasury bills (the difference between purchase price and maturity value) is subject to income tax, unless held in an ISA or SIPP.
- Investment purpose:
 - Gilts: Often used by investors seeking long-term, stable income with periodic dividend payments, or for those looking to balance long-term portfolios.
 - Treasury bills: Typically used for short-term investment strategies or as a safe option for cash management.
- Ways to buy: 
 - Gilts: Have a well-established secondary market and are actively traded on the London Stock Exchange.

Treasury bills: Issued through weekly competitive tenders held by the UK Debt Management Office (DMO).