Premium Bond Winner ?

southone

Primrose said:

ForumUser7 said:

This may be of some interest to Premium Bond holders: https://www.thisismoney.co.uk/money/saving/article-11596139/Meet-Agent-Million-woman-tells-Premium-Bond-holders-theyve-won-jackpot.html

Thank you.  An interesting read.    These days I suspect my first reaction would be to suspect the caller of being a potential scammer and call the police !

My second reaction, when the reality had sunk in  might be to think "Oh gosh, this is going to complicate my annual income tax return!"

Why? your jackpot is not taxable

Primrose

But if the interest takes you over a certain amount of "untaxable" interest income every year, I think you DO become liable on any surplus interest over that amount.  It it £12K a year?    No doubt there's a tax savvy person on here who can confirm?

And i suspect that if you give more than £3,000 of it away to family and then die in that tax yea, your estate becomes liable for Inheritance Tax on it?       Some of these big wins may not come without their own tax problems?

mummytummy

£50 on holding of £35k

2022 total win of £225 prior to that I didn’t have anything for 21 months

Sg28

Primrose said:

But if the interest takes you over a certain amount of "untaxable" interest income every year, I think you DO become liable on any surplus interest over that amount.  It it £12K a year?    No doubt there's a tax savvy person on here who can confirm?

And i suspect that if you give more than £3,000 of it away to family and then die in that tax yea, your estate becomes liable for Inheritance Tax on it?       Some of these big wins may not come without their own tax problems?

It doesnt count towards your tax free allowance either. 

Inheritance tax is totally different, the money would become part of your estate if you died. 

ColdIron

Primrose said:

But if the interest takes you over a certain amount of "untaxable" interest income every year, I think you DO become liable on any surplus interest over that amount.  It it £12K a year?    No doubt there's a tax savvy person on here who can confirm?

PB wins are tax free and invisible to HMRC just like ISAs. They don't count towards your Personal Allowance or your Personal Savings Allowance

And i suspect that if you give more than £3,000 of it away to family and then die in that tax yea, your estate becomes liable for Inheritance Tax on it?       Some of these big wins may not come without their own tax problems?

While money in PBs does count as part of your estate (like most cash assets), if you gift the money they are no longer in PBs so could hardly be seen as a shortcoming of PBs

Indout96

Nothing again for both me & Mrs indout.
seriously wondering about pulling them out now when we can get 4%+ on a 1 year fix

becky_rtw

Nothing last month but £200 (1 x 100, 1 x 50 and 2 x 25)for me this month on circa 45k.

Then locked myself out this morning trying to make a withdrawal 😂 luckily I don't need the money this instant but we are moving soon and wanted to make sure I had enough cash in my account to cover extra costs. Now awaiting a reset letter from N, S & I 😵

DjangoUnchained

this month nothing on maximum. Working out if i had this money in a 1 year saving account at about 4.3% id have earned £166 this month. time for a change i think.

ColdIron

Fixed term/rate accounts pay enhanced interest to compensate you for locking it away. PBs are easy access and tax free. Hardly a fair comparison

Johnjdc

patgarrett said:

Nothing on max holding. 

£75 across my family in total on 3x the maximum holding.

Bit of a sickening start to the new era of 3% prize fund rate!