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Posted Thu, 23 Mar 2023 20:16:34 GMT by TSeeker
I know that cashing in the winnings or the entire principal amount from Premium Bond Account for self has no tax implication. However is this true for a Premium Bond account opened for a child? Eg. The parent opened an NS&I Premium Bond Account for their child and put in 50K GBP from an account which belonged to the said parent. After sometime the parent decides to withdraw all of 50K GBP back into one of their own accounts. Assuming the child is still under 16 yrs age and the parent was still the legal custodian of the bonds, does this withdrawal have any tax implication on the parent?
Posted Fri, 24 Mar 2023 13:09:49 GMT by TSeeker
Also do we need to mention about any of these in the self-assessment: 1) principal amount withdrawals from own premium bond account 2) principal amount withdrawals from own child's premium bond account when the child is still < 16 yrs and the parent is registered as the responsible person for the account 3) the prize money won from either of the said accounts above, credited to the parent's account Or does HMRC automatically understand that these transactions have no tax implications and none of these need to be declared in the self-assessment?
Posted Tue, 28 Mar 2023 10:03:51 GMT by HMRC Admin 17

There are not tax implications for cashing in premium bonds for your child. 

There is no need to report this on a self assessment tax return .

Thank you.

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