Premium Bonds and the EU Savings Tax Directive.

[Mjc]

As all you honest people know, any winnings on your UK premium bonds must be declared on your annual French tax return.

Does anyone know if the UK authorities will be advising the French tax authorities of all Ex-pat winnings after the 1st July - or will they be deducting the 15% withholding tax?

[Chrissie]

Well, I've sent the bloomin' things off now!  Mind you, if the French authorites are interested in my 2 x £50 it's a sad case.  Where on the forms are you supposed to declare this?  (For when I win £1,000,000 next year......?)

Chrissie

(81)

[Mjc]

Since my first posting, National Savings have advised that they will not be reporting any tax free winnings to the other EU tax authorities, and it is up to ex pat winners themselves to report such winnings (as interest received) if required by (in our case) the annual French tax return.

When you win the £1,000,000, make a note that you will not only have to pax income tax on the lot, but you will also have become liable for the annual wealth tax, since your total capital will then be over 720,000 euros. Even if you give it away (would you like my address?), the recipient is then liable for Gift Tax!

[Mjc]

Since my first posting, National Savings have advised that they will not be reporting any tax free winnings to the other EU tax authorities, and it is up to ex pat winners themselves to report such winnings (as interest received) if required by (in our case) the annual French tax return.

When you win the £1,000,000, make a note that you will not only have to pax income tax on the lot, but you will also have become liable for the annual wealth tax, since your total capital will then be over 720,000 euros. Even if you give it away (would you like my address?), the recipient is then liable for Gift Tax!

SORRY THIS POSTING HAS APPEARED TWICE. FIRST TIME I GOT A MESSAGE SAYING IT HAD NOT BEEN SENT, OWING TO A "STACK OVERFLOW", WHATEVER THAT IS, SO I SENT IT AGAIN!

 

 

[Chrissie]

Blimey!  Scarcely worth winning, then.....  I'd better do the Lotto instead.  (Or is that taxable???)

Chrissie

[mascamps.com]

I agree with the problem (which I would like to have) if you win the million.

However, if the French loto isn't taxable (I don't know if it is or isn't), then neither would the PB wins as otherwise the French authorities would fall foul of European law.

 

Arnold

 

[derf]

[quote]I agree with the problem (which I would like to have) if you win the million. However, if the French loto isn't taxable (I don't know if it is or isn't), then neither would the PB wins as otherwise t...[/quote]

I am afraid the French Revenue service don't consider that Premium Bonds are a lottery, because you can get back your original stake money, so it would be taxed

[mascamps.com]

If National Savings aren't intending to report winnings, then that is probably because they consider it a lottery, albeit one which returns the original stake. There are other national lotteries that return very high percentages of the original stake (something like 70% in Germany if I remember correctly).

It doesn't really matter what the French authorities consider it as. The important thing is what it is considered as under European law.

If you did win the million the wealth tax would kick in alright (perhaps a time to relocate to the UK?).

 

Arnold