Premium Bonds (UK) & Prize Bonds (Ireland)

J2010

Hi folks, I was wondering if anyone here might be able to shed a little light on the following situation in regards to the UK now leaving the EU and how it might affect savings such as the following.

I currently have savings with both the NSANDI in the form of UK Premium Bonds and also the Irish Government Prize Bonds...

What I'd like to know is there a possibility that the exit from the EU would cause me to loose any savings i hold in the Irish Prize Bonds? I don't see how I would loose them but would worry that some sort of tax by either or both governments would be applied?

Maybe I'm worrying over nothing?

HappyMJ

J2010 wrote: »

Hi folks, I was wondering if anyone here might be able to shed a little light on the following situation in regards to the UK now leaving the EU and how it might affect savings such as the following.

I currently have savings with both the NSANDI in the form of UK Premium Bonds and also the Irish Government Prize Bonds...

What I'd like to know is there a possibility that the exit from the EU would cause me to loose any savings i hold in the Irish Prize Bonds? I don't see how I would loose them but would worry that some sort of tax by either or both governments would be applied?

Maybe I'm worrying over nothing?

Both guaranteed by the respective governments.

It's government debt....to repay it (which they have little intention of doing) they'll raise taxes and cut spending....or print more money.

Malthusian

The chance of the Irish government appropriating foreign investors' money for any reason is nil. It would make Argentina look like a tea party.

That said, are you sure Irish Prize Bonds aren't taxable for UK investors already? Google is surprisingly silent about the issue, but I would assume that for UK investors any winnings would be taxed by HMRC as income, unlike Premium Bond winnings.

Although lottery winnings are free of tax in the UK, Prize Bonds are not a lottery as you don't lose your capital when you lose. And just because Premium Bonds are specifically exempt from UK tax it doesn't mean that Irish Prize Bonds are.

[Deleted User]

Can you buy Prize Bonds (Ireland) if you live in the UK? It's something I may be interested in, if you can. Anyone done it?

Malthusian

cmondynamite wrote: »

Can you buy Prize Bonds (Ireland) if you live in the UK? It's something I may be interested in, if you can. Anyone done it?

I can't see anything suggesting they are available to Irish citizens only, but the more important question is why would you want to? The return is worse than UK Premium Bonds (0.85%pa vs 1.25%) and as no-one has contradicted my earlier post I would assume that unlike Premium Bonds any winnings would be taxed as overseas interest. So for a UK basic rate taxpayer the return is almost half of that for Premium Bonds.

You'd be better off if you put the money in a best-buy savings account and used some of the difference in interest to buy lottery tickets.