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premium bonds - which lines?


Doodle

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Hi all,

I need to declare a very small premium bond win from last year (I mean small) but I'm not sure on which lines on the pink form I should be inserting the amount. I believe it transfers into 2TR on the blue form is that correct?

Thanks in advance. Mrs KG
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Mrs KG wrote :

I believe it transfers into 2TR on the blue form is that correct?

Well being the squeaky clean kind of person I am that's what I do as regards the blue 2042.

Though not having rec'd the pink 2047 form yet I cannot remember where I put down our 'wins' from Ernie on that last year, seeing as they changed the form to enrich our experience .

Sue
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Hi CT,

The reason I'm declaring is due to this article written in a well known newspaper. I'm risk averse anyway and having read this article...................Mrs KG

Limoges tax office boss Pierre Vergne, who has dealt with Premium Bond queries from Britons in France, said they were aware that there was no direct income from them.

However he said they were seen as an investment and the winnings from them were deemed taxable.

He said: “They are a financial investment just like any other, what is called an obligation à lot in France [prize bond].

“These used to exist in France but no longer do.”

NS&I describe Premium Bonds as a kind of investment where you enter a prize draw instead of getting interest, and winnings are not taxable in the UK.

However in one sense interest is involved: the prize fund comes from a (currently) 1.5% interest on the value of all of the money invested in bonds.

This interest is put into the prize pot instead of being paid individually.

It is ultimately the French tax authorities who decide whether the money should be declared, and in this case they have decided they do not compare them to an ordinary lottery win.

The winnings should be recorded on tax form 2047, which is for income from foreign investments, under section A.

This section is also for UK stocks and shares dividends and ones from PEPs and ISAs.

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Thanks Sue. Yes the pink form has changed as I checked against last years but my interest last year wasn't from PBs so I don't know if they go elsewhere and I have no other interest this year as my BSs on the Isle of Man and Guernsey have close their operations. Mrs KG
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Ah well that's France for you. In Germany they are considered a lottery win. Only if you put the win back into PB's or another saving fund do you pay tax on the income from that investment. How you actually do that I have no idea. Easiest thing to do is not to mention it and if forced I would say I spent the winnings.

I wonder what will happen when we leave the EU and the dual taxation and the sharing of tax information is no longer a EU requirement. I know it was initially between countries but then it was all merged into EU legislation or so I was told.
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