Premium Bonds
Hi All
Anyone any ideas on how it stands on having UK premium bonds left in the UK whilst living in Australia? For example are any winnings (as if!) taxable in Australia if that is where you have them sent? thanks ian |
Re: Premium Bonds
In <[email protected]> ian wrote:
> Hi All Anyone any ideas on how it stands on having UK premium bonds left in the UK > whilst living in Australia? For example are any winnings (as if!) taxable in > Australia if that is where you have them sent? I'll be interested to know the definitive answer to that, but I'm pretty sure the winnings will be classed as taxable income that must be declared in an Aus tax return. |
Re: Premium Bonds
Originally posted by ian Hi All Anyone any ideas on how it stands on having UK premium bonds left in the UK whilst living in Australia? For example are any winnings (as if!) taxable in Australia if that is where you have them sent? thanks ian Anybody?? Thanks! ST |
we cashed ours in and will put money into summit in Oz
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Re: Premium Bonds
Originally posted by ian Hi All Anyone any ideas on how it stands on having UK premium bonds left in the UK whilst living in Australia? For example are any winnings (as if!) taxable in Australia if that is where you have them sent? thanks ian Your winnings ARE taxable in Australia. eg: you win £1M convert at say 2.5, and get $2,500,000 into OZ. The Tax man will then take just about $1,212,500 of that in tax !!! Obviously smaller winnings may not hit the same high tax rate as the big one would. Option: Put the bonds in the name of someone you trust, that is staying in the UK :) or Return to UK if you win the big one !!! (not sure if the ATO would then chase you up for their share, especially if the money never entered Australia) :D |
Why are any winnings on Premium Bonds taxable in Oz? Lottery winnings are not taxable and as Premium Bonds are a game of chance I would think they would fall into that category. Interest is taxable but can't see how something so uncertain would be classified as interest.
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Originally posted by Vicky88 Why are any winnings on Premium Bonds taxable in Oz? Lottery winnings are not taxable and as Premium Bonds are a game of chance I would think they would fall into that category. Interest is taxable but can't see how something so uncertain would be classified as interest. Windfall gains from winning a prize in a lottery or in a competition are generally non-assessable This quote gives an indication though: The value of benefits or prizes you receive from an investment body you have invested in must be included as assessable income on your tax return. Premium Bonds are investments - taxable http://www.ato.gov.au/individuals/co...tent/32214.htm |
Interesting, truthfully it never occurred to me that they would be taxable earnings. Does anyone know if the UK authorities pass the names of winners in Oz to Oz tax authorities? I know when we lived in the US we were unable to hold Premium Bonds because of some agreement between the US-UK so makes me wonder what type of communication goes between the two countries.
Oz tax regulations specify they won't pass any info onto foreign bodies, wonder what Uk rules are? Personally I would think that I you did have a big win the only way you might get caught would be if you were trying to bring the money into Oz. YOu could slowly but surely suck it out of the hole in the wall and would they know?? |
And how can they class Premium Bonds as "investments" anyway? You never earn any interest on them, and the chances of a minimum £50 win only really exist once you hold £20,000 or more (which I used to, and pretty much had a £50 win every month, sometimes 2 or 3 wins, but never the big one :( )
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Originally posted by Jacqui And how can they class Premium Bonds as "investments" anyway? You never earn any interest on them, and the chances of a minimum £50 win only really exist once you hold £20,000 or more (which I used to, and pretty much had a £50 win every month, sometimes 2 or 3 wins, but never the big one :( ) :D The difference being that with lottery, you lose what you put in, but with ERNIE, you at least get your initial investment back. That just made me think, any foreign exchange variation will affect your tax return when you cash them in aswell :) oops Originally posted by Vicky88 Personally I would think that I you did have a big win the only way you might get caught would be if you were trying to bring the money into Oz. YOu could slowly but surely suck it out of the hole in the wall and would they know?? |
Originally posted by biggy we cashed ours in and will put money into summit in Oz What is Summit? Is this the same sort of scheme as the premium bonds? |
Just in case you might be sitting on a small fortune :rolleyes: ha ha if only, you can now type in your premium bonds holder number and it will let you know if you've won anything. Here's the link http://www.nsandi.com/products/pb/ha...eYouWon&view=1
Bet there's loads of you ever hopefuls rummaging through drawers right now! :D |
Originally posted by Jacqui And how can they class Premium Bonds as "investments" anyway? You never earn any interest on them, and the chances of a minimum £50 win only really exist once you hold £20,000 or more (which I used to, and pretty much had a £50 win every month, sometimes 2 or 3 wins, but never the big one :( ) This would be very similar to investment in government bonds and some savings schemes. G |
Re: Premium Bonds
Originally posted by ian Hi All Anyone any ideas on how it stands on having UK premium bonds left in the UK whilst living in Australia? For example are any winnings (as if!) taxable in Australia if that is where you have them sent? thanks ian Well we were told by the embassy in Berlin, that any money we bring in in the first 6 months is not taxable but after that it is, so I guess you just have to pray that your bonds come up in the first 6 months ;) |
Originally posted by Grayling Interestingly I was once told by an financial adviser that a block of premium bonds could be considered a legitimate investment as it has been estimated that if you hold a worthwhile amount (forget the figure) it is estimated that the winnings will return approximately 5% per annum. This would be very similar to investment in government bonds and some savings schemes. G I had a £1 one for 40 years and a £5 one for 30 years, and won nothing !! :D |
Originally posted by Jacqui Just in case you might be sitting on a small fortune :rolleyes: ha ha if only, you can now type in your premium bonds holder number and it will let you know if you've won anything. Here's the link http://www.nsandi.com/products/pb/ha...eYouWon&view=1 Bet there's loads of you ever hopefuls rummaging through drawers right now! :D I won 500 quid!!!! :PARTY: |
Yep, you should average about 2.4% as someone else said but when both my husband and I held what was then the maximum of 20,000 we never even went close to achieving the 2.4%, 1% was more like it. However, was thrilled the one month I did win 500 quid.
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I have had just the one £500 win too.
My mum only had about £100 worth of premium bonds and she won £500 back in 1986. It was a few months before my wedding, so as you can imagine, she was highly delighted. £500 would have bought a lot more 18 years ago. When I rang her at work to tell her there was a letter postmarked from Lytham St Annes she told me to open it but didn't believe how much the cheque was for, thought it was a wind-up. My dad only had a handful of premium bonds too, and he won £100 in 1970. I can vaguely remember him hugging me and being excited and I was shouting we're rich (I was only 5 years old). What would today's equivalent be of that £100 win? Anyone know how to work it out? Mum had big plans on how to spend the money, but Dad just bought some more bonds! |
Originally posted by Jacqui What would today's equivalent be of that £100 win? Anyone know how to work it out? So £100 would be about 7.7 times an average wage, say £464.70 these days. So about £3,500 in todays money. |
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