Mjc Posted April 28, 2005 Share Posted April 28, 2005 Further to a recent thread on this subject, I am NOW informed by UK National Savings that any prizes won on Premium Bonds by overseas residents WILL be reported to the Inland Revenue for onward advice to the tax authorities of the appropriate countries. I had been told previously that they would not be so advised.Does anyone have any different information?As such winnings are taxable in France, could one claim on the annual tax return that tax has already been deducted in the UK, since the percentage paid in prizes is one calculated as a NET distribution after notional tax deduction? Link to comment Share on other sites More sharing options...
Mjc Posted May 11, 2005 Author Share Posted May 11, 2005 Further update.Inland Revenue have now confirmed that from 1st January next they will be passing to all EU tax authorities details of any premium bond winnings paid from 1st July 2005 onwards.So, although tax free in the UK, all such winnings are taxable in France. Link to comment Share on other sites More sharing options...
Chrissie Posted May 13, 2005 Share Posted May 13, 2005 Which box on the tax form would you have to put it in?Better win that million quid before 1st July, hadn't I......Chrissie (81) Link to comment Share on other sites More sharing options...
mascamps.com Posted May 13, 2005 Share Posted May 13, 2005 Interesting development.I'm not sure that the rate is net, rather that it's paid without being taxed but it's been a while since I looked at the rules on the back of the application form. Arnold Link to comment Share on other sites More sharing options...
Mjc Posted May 13, 2005 Author Share Posted May 13, 2005 [quote]Which box on the tax form would you have to put it in? Better win that million quid before 1st July, hadn't I...... Chrissie (81)[/quote]Sorry Chrissie, but it's already spoken for! Link to comment Share on other sites More sharing options...
Mjc Posted May 13, 2005 Author Share Posted May 13, 2005 [quote]Interesting development. I'm not sure that the rate is net, rather that it's paid without being taxed but it's been a while since I looked at the rules on the back of the application form. Arnold[/quote]The PB winnings are paid gross, without deduction of tax, and in Britain, they are not taxable.However, I seem to remember that the level of interest paid in to the "pool" for each monthly draw, is equivalent to the value of a net (ie taxed) return, so the government effectively has "taken" tax by paying out less than the gross (i.e. bank rate) return. I am not sure whether, on your French tax return, you could enter the winnings as having been received tax paid - tax not recoverable from the UK. Might be worth a try, and the legal ramifications could go on for years. Link to comment Share on other sites More sharing options...
Chanto Posted May 16, 2005 Share Posted May 16, 2005 I am bereft reading this thread as I had heard an ugly rumour about tax and premiums bonds. If the prize money is automatically reinvested into bonds, is it still taxable? Daft question as I suspect I already know the answer. I've also heard that ISAs are also taxable here in France. Is this so? Mon Dieu - is there no sanctuary..... Link to comment Share on other sites More sharing options...
Mjc Posted May 16, 2005 Author Share Posted May 16, 2005 I don't know if ISAs are taxable in France, but the UK Inland Revenue will NOT be reporting them to France, I have been reliably informed. So, it's up to you whether or not you declare them. Link to comment Share on other sites More sharing options...
Chanto Posted May 16, 2005 Share Posted May 16, 2005 Thank you Mic,I think on the subject of ISAs, the ether will be silent........... Link to comment Share on other sites More sharing options...
LesLauriers Posted May 16, 2005 Share Posted May 16, 2005 "I think on the subject of ISAs, the ether will be silent."It had better be! It's a 750€ fine, for each undeclared account, every time you do a tax return! And the fine is for not listing the account failing to declare income is subject to other penalties. Link to comment Share on other sites More sharing options...
Chanto Posted May 16, 2005 Share Posted May 16, 2005 Methinks I should develop un penchant for prison food mon ami Link to comment Share on other sites More sharing options...
mascamps.com Posted May 16, 2005 Share Posted May 16, 2005 Reinvesting PB winnings would be taxed the same as if you'd had the money paid out because basically they pay out the money and then use it to buy you more bonds.ISAs and PEPs would both be taxable in France.What you need to do is open the equivalent accounts under the French system ie PEA (for shares) and CODEVI (for savings).The CODEVI saves a lot of hassle re tax on savings here but is limited to 4600€ per person. It's instant access so you're better having one of these than a normal savings account here. Sadly, the rates are somewhat below the equivalent for ISAs (2.25% vs 4% or more in the UK).Pensions are taxable as they are in the UK when they pay out the money. You can pay into a UK pension scheme under the stakeholder rules for up to five years after you leave the UK (tax years that is) and you get back the tax on those payments from the UK too. Courtesy of assorted European laws, the French should treat this as though it were a French based scheme. Arnold Link to comment Share on other sites More sharing options...
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