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Posted Fri, 03 Nov 2023 10:44:21 GMT by Puddle Splash
Hi, Do I have to declare Premium Bond prizes on a tax return ? Thank you
Posted Wed, 08 Nov 2023 15:40:27 GMT by HMRC Admin 20 Response
Hi Puddle Splash,
No you do not.
Thank you.
 
Posted Wed, 26 Jun 2024 11:23:53 GMT by Audrey Clark
Are monthly premium bond wins classed as ‘income? To date I win approx £1k per year. At present I gift my only child (my adult son) £3k from the £3k annual tax-free allowance. This £3k includes Christmas & birthday money. If I was to give him my premium bond wins does this come off the £3k gifting annual tax-free allowance or is it classes as ‘surplus income’? Thank you.
Posted Thu, 27 Jun 2024 16:04:55 GMT by Audrey Clark
Are monthly premium bond wins classed as ‘income? To date I win approx £1k per year. At present I gift my only child (my adult son) £3k from the £3k annual tax-free allowance. This £3k includes Christmas & birthday money. If I was to give him my premium bond wins does this come off the £3k gifting annual tax-free allowance or is it classes as ‘surplus income’? Thank you.
Posted Wed, 03 Jul 2024 06:13:33 GMT by HMRC Admin 25 Response
Hi Audrey 
The winnings from premium bonds are not taxable income.
For Inheritance Tax purposes (not the same as Income Tax) you will have given your son the maximum tax does not count towards Inheritance Tax, before you gift him any of your premium bond winnings.
Any cash gifts over the £3000 'annual exemption' will count towards your estate for Inheritance Tax purposes.
Please have a look ahere:
How Inheritance Tax works: thresholds, rules and allowances
Thank you. 
Posted Wed, 03 Jul 2024 07:48:33 GMT by Audrey Clark
Thank you for the reply. I have looked at the areas of the HMRC website you mention and I still cannot see a definitive answer to my query. From your reply however I assume that any premium bonds wins that I wish to gift my son should come from the £3k annual tax free allowance. Thank you
Posted Wed, 04 Dec 2024 12:52:44 GMT by Stevan berry
I have seen recently via an accountants that premium bond winnings are classed as income. Then this can be used in calculating excess income over expenditure. Is this correct?
Posted Wed, 04 Dec 2024 12:55:27 GMT by Stevan berry
Hi is the £3000 gifting and marriage gifting allowance of £5000 classed as an annual expense or a deduction from my capital. Thanks.

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