Child Tax Credit - Premium Bond prizes; income?

ghandi

Currently working through renewal form for CTC.

Do premium bond prizes (a few £50 wins, nothing big) count as income for CTC purposes?

SuziQ

I have often wondered this,have never been lucky (one of my children won £50 6 years ago before I was on benefit) I would say yes. But if they are in the children's names? Will be interested to see if anyone answers this!

alwaysonthego_2

If you win more then £300 in a tax year you need to declare it has income.

ghandi

alwaysonthego wrote: »

If you win more then £300 in a tax year you need to declare it has income.

Does that mean that my few, small National Lottery wins count as income as well!

Premium Bond prizes do not count as income for Income Tax purposes, same as National Lottery prizes (which also don't count as income against CTC).

So should / do premium bonds count as income against CTC? If so where is this stated, as nothing is mentioned in Renewal Pack 'checklist and guidance notes' or anywhere online that I can find.

I am not being picky, I just want to see it in 'writing' as it's currently hearsay and rumour.

alwaysonthego_2

ghandi wrote: »

Does that mean that my few, small National Lottery wins count as income as well!

Premium Bond prizes do not count as income for Income Tax purposes, same as National Lottery prizes (which also don't count as income against CTC).

So should / do premium bonds count as income against CTC? If so where is this stated, as nothing is mentioned in Renewal Pack 'checklist and guidance notes' or anywhere online that I can find.

http://www.hmrc.gov.uk/incometax/taxable-income.htm

Interest on savings

• Bank and building society interest - not including Individual Savings Accounts (ISAs) and Personal Equity Plans (PEPs).
• National Savings and Investments accounts and bonds.

ghandi

Alwaysonthego,
Many thanks for the link, which is one of the many I have already looked at. If you read a bit further down under Non-taxable you will find Premium Bonds, cut 'n' pasted below:

What counts as non-taxable income?

State benefits

• Disability Living Allowance.
• Attendance Allowance.
• Lump sum Bereavement Payments.
• Pension Credit.
• Free TV licence for over 75s.
• Winter Fuel Payments.
• Housing Benefit.
• First 28 weeks of Incapacity Benefit.
• Income Support - certain payments.
• Child Benefit.
• Guardian's Allowance.
• Maternity Allowance.
• Industrial Injuries Benefit.
• Severe Disablement Allowance.
• War Widow's Pension.
• Young Person's Bridging Allowance.

Interest on savings

• All ISAs and PEPs.
• Savings Certificates.
• Premium Bonds.

Thanks anyway for help.

alwaysonthego_2

gross interest from bank or building society accounts (before tax has
been taken off). Your passbook or statement will tell you this figure.

Do not include

ISAs, PEPs, Index-linked and Fixed Interest National
Savings Certificates and Children’s Bonus Bonds

http://www.hmrc.gov.uk/forms/tc600-notes.pdf

pg 24

It is confusing because it doesn't say for sure, I would maybe pop down to your local cab because they have CPAG benfit and tax credit reference book that should have the information. if it is not clear form looking on the HMRC site then if you phone tax credits help line you might get an adviser that may give you the wrong info.

ghandi

I rang up my local CAB who had a look through the CPAG Welfare Benefits & Tax Credits handbook 2008/09.

The CAB advisor 'advised' that Premium Bond wins are not income for CTC purposes so I have just carried out my renewal over the phone and didn't include my few hundred quid of Premium Bond wins.:D

alwaysonthego_2

Glad it is sorted for you.

real1314

I'd expect almost all benefits would treat premium bond wins as capital, not income.
iirc income has to have some sort of pattern / direct cause.

premium bond wins are random.