Index-linked gilt · Long-dated · TR49
UK Treasury Index-Linked 1.875% 2049 Gilt (TR49)
- Real yield
- 2.56%
- If RPI averages 3%
- 5.58%
- Clean price per £100
- £88.17
- Matures
- 22 Sept 2049
The UK Treasury Index-Linked 1.875% 2049 is a index-linked gilt with a 1.875% coupon, maturing on 22 Sept 2049 — roughly 22.9 years from now. At the latest market price it is a long-dated (15+ years) holding currently trading below par (at a discount).
Based on a clean price of about £88.17 per £100 nominal, this gilt offers a running yield of 2.13% and a real yield of 2.56% (about 5.58% a year if RPI inflation averages 3%). The running yield reflects the income return from coupons alone, while the real yield also accounts for the capital gain if you hold to redemption.
As an index-linked gilt, both its principal and coupon payments are uprated in line with inflation (RPI). The headline coupon is low because the inflation uplift is delivered separately — making this type of gilt suited to investors who want to protect real purchasing power rather than maximise nominal income. The real yield is the return on top of inflation; the cash return depends on what RPI actually does.
Worked example: £10,000 held to maturity
Assuming 20% income tax on coupons (gains on gilts are free of Capital Gains Tax) and RPI inflation of 3% a year.
| Amount invested | £9,976.67 |
|---|---|
| Coupon income (less accrued interest paid) | £7,003.44 |
| Capital gain or loss (tax-free) | £12,297.30 |
| Total profit before tax | £19,300.73 |
| Total profit after tax | £17,897.35 |
| Annualised return before tax | 4.81% |
| Annualised return after tax | 4.58% |
Similar gilts
Gilts of the same type maturing around the same time.
| Gilt | Matures | Real yield |
|---|---|---|
| UK Treasury Index-Linked 0.5% 2050 | 22 Mar 2050 | 2.59% |
| UK Treasury Index-Linked 0.125% 2048 | 10 Aug 2048 | 2.59% |
| UK Treasury Index-Linked 0.125% 2051 | 22 Mar 2051 | 2.58% |
| UK Treasury Index-Linked 0.75% 2047 | 22 Nov 2047 | 2.56% |
Questions
What is the yield on the UK Treasury Index-Linked 1.875% 2049 gilt?
Based on the latest market price, the UK Treasury Index-Linked 1.875% 2049 has a real yield of 2.56% (about 5.58% a year if RPI inflation averages 3%) and a running (income) yield of 2.13%. Yields move daily with the gilt's market price.
When does the UK Treasury Index-Linked 1.875% 2049 gilt mature?
This gilt matures on 22 Sept 2049, approximately 22.9 years from today. At maturity holders receive the £100 nominal value per unit, uprated for inflation.
Are returns on the UK Treasury Index-Linked 1.875% 2049 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 UK Treasury Index-Linked 1.875% 2049 return?
A £10,000 investment would buy approximately 113 units and, held to maturity, is projected to return a total profit of about £19,300.73 (gross). See the worked example on this page for the full breakdown.