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Tax credits and Premium Bonds winnings?
Beachcomber372
Posts: 42 Forumite
Hi, I am currently receiving Tax Credits and thinking of putting savings into Premium Bonds.
If I were lucky enough to win a prize would that amount need to be declared?
Cheers.
If I were lucky enough to win a prize would that amount need to be declared?
Cheers.
0
Comments
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Good question!Tax credits rules state capital is disregarded but you must declare any interest (income) on your capital above £300.Premium Bonds give winnings which are tax free, not interest which is taxable income (and must be declared if above £300), so my interpretation would be that any winnings would be deemed capital, not income. The same argument could be made for Lottery winnings - would you declare these as income? No.Happy to be proven wrong if someone can find guidance that suggests otherwise.Our green credentials: 12kW Samsung ASHP for heating, 7.2kWp Solar (South facing), Tesla Powerwall 3 (13.5kWh), Net exporter1
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Agree with Ned. Income from tax free investments is ignored.
https://www.gov.uk/guidance/tax-credits-working-out-income#other-incomeSaving and investment income
Include the amount before tax is taken off. Do not include interest from tax-exempt investments like Individual Savings Accounts.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.2 -
Thanks, I thought that might be the answer but I just wanted to double check as I couldn't find much info on the net specifically mentioning Premium Bonds and Tax Credits. 😊calcotti said:Agree with Ned. Income from tax free investments is ignored.
https://www.gov.uk/guidance/tax-credits-working-out-income#other-incomeSaving and investment income
Include the amount before tax is taken off. Do not include interest from tax-exempt investments like Individual Savings Accounts.0
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