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Premium Bonds


Bridgefiend
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Hi

I don't describe any of the accounts on the handwritten sheet that I supply as the 3916.

We do have premium bonds and I write the name of the account ie National Savings & Investments, the account holder's name, account number and date of opening of the account and that is all.

It's not been questioned by the tax office yet so I presume it's OK.

Chris

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I tried to explain the concept of Premium Bonds to our tax office with the purpose of trying to work out where to put the value of the bonds on the tax return.  They couldn't get their head round the idea so we mutually agreed to ignore them.

Technically if you have a win then you have a "gain" on the original investment so should pay tax on it, but as it's tax free in the UK I have no idea how you would explain that away with a dual tax treaty.

Now that you can get the winnings (as if !!) paid into a french bank account it may make someone higher up the French tax hierarchy sit up and take notice as it could be a nice little earner for them. I suggest any winnings are re-invested in the UK and mums-the-word [Www]

 

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HoneySuckleDreams: how do you explain ISA interest, which is also tax-free in UK but needs to be declared as a normal investment income in France?

If you have the premium bonds registered to a French address, it is quite possible NS&I report winnings to the French tax office (I know UK banks report interest).
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[quote user="HoneySuckleDreams"]

I tried to explain the concept of Premium Bonds to our tax office... They couldn't get their head round the idea so we mutually agreed to ignore them.

Technically if you have a win then you have a "gain" on the original investment ...

 [/quote]

No, your winnings are regarded as interest; the NSand I do declare such a % rate somewhere in their blurb. Though this interest is tax-free in the UK but taxable as part of your global income in France.

Here, ostensibly, the interest should be declared to the fisc via forms 2047 and 2042.

If you do not then that is your affair; I am sure you are not alone.

Sue [:)]

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  • 4 weeks later...
Our local office in Bellac, plus the accountant we went to this year(due to some complications ) have both told us they are treated as winnings and therefore you are not liable to pay tax on them. Only any interest generated once the money has been invested/saved in an account.

Hope that helps.

Johnnyboy

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[quote user="johnnyboy"]Our local office in Bellac, plus the accountant we went to this year(due to some complications ) have both told us they are treated as winnings and therefore you are not liable to pay tax on them.

[/quote]

Our very large tax office (where there is also a fraud detection department for quite a part of France) said that they weren't winnings as the stake is not lost but kept in perpetuity, so the amount paid to you is interest.

So you takes your choice.

Sue [:)]

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Because in early summer 2012 I had a letter from my local tax office asking me to come in to explain why £2000+ bank interest did not appear on the previous year tax declaration. When I went the tax officer showed me a copy of an interest paid statement from Lloyds.

It was easy to explain, The interest was not paid until 5 April of the current year. Lloyds had just reported the totals for the interest paid in the UK tax year ending April rather than the previous calendar (French tax) year. I had the Lloyds payment statement to prove when the interest had been paid to me; it was accepted and copied. I declared the interest on the next tax forms and there was no follow-up.
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Several years ago my wife was pinged for the non declaration of £320 interest from Citibank UK. The local tax office sent a demand for the social charges on this amount which we paid. We have declared all the interest from the UK since ;).

As usual, its the little people that suffer, regrettably we do not have millions in bank accounts we have "forgotten" about!
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