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

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?

Hi is the £3000 gifting and marriage gifting allowance of £5000 classed as an annual expense or a deduction from my capital. Thanks.

Hi,
Interest from Premium Bonds is classed as non taxable, so any prizes can be treated as free from Income Tax. Premium Bond income is exempt from Capital Gains Tax as well so you do not have to worry about declaring and paying tax on any gains.
Thank you.

Hi thanks for above. But my question is are premium bonds prizes classed as income or Capital. This is for working out excess income over total expenses. Thanks

Hi,
It is treated as capital, as it is not taxable.
Thank you.