Premium Bonds
#1
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
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
#2
Guest
Posts: n/a
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.
> 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.
#3
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
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
#5
Guest
Posts: n/a
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
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)
#6
BE Enthusiast
Joined: Oct 2002
Posts: 875
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.
#7
Guest
Posts: n/a
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.
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
#8
BE Enthusiast
Joined: Oct 2002
Posts: 875
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??
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??
#9
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 )
#10
Guest
Posts: n/a
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 )
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 )
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??
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??
#11
Originally posted by biggy
we cashed ours in and will put money into summit in Oz
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?
#12
Just in case you might be sitting on a small fortune 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!
Bet there's loads of you ever hopefuls rummaging through drawers right now!
#13
Bitter and twisted
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
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 )
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
#14
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
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
#15
Guest
Posts: n/a
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
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 !!