Bond Ladder

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ddldub

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As part of a wider strategy where my pension is primarily in higher risk assets, I would like to put some savings into a high quality/low risk bond ladder covering 5-6 years (to be held to maturity). I am a standard rate tax payer, so it seems that this could be relatively efficient if I found higher coupon, lower gain bonds. I am assuming I would use mainly Euro Area Govt bonds or AAA rated Euro company bonds. I don't see a lot of discussion or information on this topic here or generally related to Ireland (presumably because the returns are low), but I would welcome any views or advice from anyone with experience in this area.
 
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Lots if European countries, including the UK and Ireland, don't charge CGT for gains on direct purchases of government debt, and I believe that given higher UK rates, UK tax-payers construct gilt-ladders consisting of low-coupon gilts in order to take advantage of this. I'm guessing that the CGT exemption is only for those who are tax resident so I imagine that you can only take advangtage of this in Ireland so perhaps this is something to be aware of?
 
I am very interested in Gilts, but CGT would definitely apply, so I would have to look for high coupon gilts and currency risk would be a factor.
 
I am not a tax advisor but I think direct gilt holdings are CGT-free for non-residents too, though I imagine that you will have to pay CGT in Ireland so there is no free lunch. That said, CGT in Ireland and the UK is lower than the higher rate of income tax so low-coupon government bonds might still be a relatively more attractive investment if you do pay the higher income tax rate.
 
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