Premium Bonds

Hi, Do I have to declare Premium Bond prizes on a tax return ? Thank you

Hi Puddle Splash,
No you do not.
Thank you.
 

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.

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.

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. 

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