Lloyds 6.500% 2040 Gilt
Live yield & returns · Last updated 2026-05-31T17:09:53.966977+00:00 · Capital at risk
5.87%
6.13%
£106.08
17 September 2040
The Lloyds 6.500% 2040 is a corporate bond with a 6.500% coupon, maturing on 17 Sept 2040 — roughly 14.3 years from now. At the latest market price it is a medium-dated (5–15 years) holding currently trading above par (at a premium).
Based on a clean price of about £106.08 per £100 nominal, this gilt offers a running yield of 6.13% and a yield to maturity of 5.87%. The running yield reflects the income return from coupons alone, while the yield to maturity also accounts for the capital movement if you hold to redemption.
Because capital gains on gilts are exempt from UK Capital Gains Tax, a gilt priced below par can be particularly tax-efficient: the pull-to-par capital gain is tax-free, and only the coupon income is taxable. The calculator below shows both gross and net (after-tax) returns.
Worked example: a £10,000.00 investment
Held to maturity, assuming 20% tax on coupon income (capital gains on gilts are tax-free):
| Units purchased | 94 |
| Amount invested | £9,971.05 |
| Total coupon income | £8,741.89 |
| Capital gain / loss | -£616.88 |
| Total profit (gross) | £8,125.01 |
| Total profit (after tax) | £6,376.63 |
| Annualised return (gross) | 5.70% |
| Annualised return (net) | 4.47% |
Estimates for illustration only. Not financial advice.
Similar gilts
| Gilt | YTM | Maturity |
|---|---|---|
| Catalyst Healthcare (Manchester) Finance 2.411% 2040 | 0.10% | 30 September 2040 |
| B.A.T. International Finance plc 5.750% 2040 | 6.21% | 5 July 2040 |
| HSBC Holdings Plc 6.000% 2040 | 6.14% | 29 March 2040 |
| GlaxoSmithKline Capital Plc 5.250% 2042 | 5.79% | 10 April 2042 |
Frequently asked questions
What is the yield on the Lloyds 6.500% 2040 gilt?
Based on the latest market price, the Lloyds 6.500% 2040 has a yield to maturity of 5.87% and a running (income) yield of 6.13%. Yields move daily with the gilt's market price.
When does the Lloyds 6.500% 2040 gilt mature?
This gilt matures on 17 Sept 2040, approximately 14.3 years from today. At maturity holders receive the £100 nominal value per unit.
Are returns on the Lloyds 6.500% 2040 taxed?
Capital gains on UK gilts are exempt from Capital Gains Tax. Coupon income is taxable as income, though it can be sheltered within an ISA or SIPP. This page shows both gross and after-tax figures.
How much would a £10,000 investment in the Lloyds 6.500% 2040 return?
A £10,000 investment would buy approximately 94 units and, held to maturity, is projected to return a total profit of about £8,125.01 (gross). See the worked example on this page for the full breakdown.