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Is premium bond money taxed once it’s moved elsewhere?
ShinyStarlight1
Posts: 209 Forumite
I’ve cashed in some of my premium bonds and deposited the resulting money into a savings account. Is that money now taxable as income?
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Comments
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only the interest on it gained in the savings account would be taxable1
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The capital moved is not income, any interest earned will be counted as income and taxable depending on your personal circumstances.1
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Thank you for clearing that up for me, much appreciated.0
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Capital is not income. If you place the capital somewhere where it generates income and isn't in a tax wrapper (such as ISA, pension, investment bonds etc) then it may be taxed.ShinyStarlight1 said:I’ve cashed in some of my premium bonds and deposited the resulting money into a savings account. Is that money now taxable as income?
You mention savings account. So, that means interest will be the income type and that means it will be subject to income tax and the appropriate allowances for interest and income.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1
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