Indec Linked Gilt Sale Bug

[Stephen Google]

I’ve run into what looks like a long‑standing Microsoft Money bug when redeeming a UK index‑linked gilt.

One of my ILGs (TR26) was redeemed earlier this year for around £60k. The redemption was entered as a normal Sell transaction, with no accrued interest and no category (as expected for investment transactions).

However, when I run an Account Transactions or Investment Income report, Money shows an Interest entry of about £7k linked to that Sell. This amount was not entered by me and does not correspond to the coupon (which is only 0.125% and appears separately as ~£39).

It looks like Money is treating part of the capital uplift in the ILG redemption price as bond interest, even though index‑linked uplift is capital, not income. The Sell transaction itself has no category field and no interest entered, so the misclassification seems to be generated internally by Money’s bond logic.

I tried:

• deleting and re‑entering the Sell

• moving the coupon to a different date

• checking for hidden interest transactions

• checking the cash account entry (which is locked because it’s the Sell’s cash leg)

None of these removed the phantom interest tag.

Has anyone else seen this behaviour with index‑linked gilts, and is there a known workaround?