CRA and UK premium bonds
 

Hi, I was just wondering if anyone has actually checked with CRA as to whether you have to declare UK premium bond winnings (which are tax-free in the UK) on your tax return?

Also, has anyone challenged the rule that a tax-free (in the UK) lump sum payment from a UK pension is taxable in Canada (unless it is invested directly into some type of Canadian pension)?

Thanks

Re: CRA and UK premium bonds
 

The UK pension lump some topic has been on here for many years. Every thing you need to know is on the enclosed post. https://britishexpats.com/forum/cana...canada-896886/

Re: CRA and UK premium bonds
 

Thank you

Re: CRA and UK premium bonds
 

Occasional winnings from gambling and lotteries are not included in income in Canada. This can change if the winnings become part of a pattern of income, when you could be deemed to be in the business of gambling. Business income is taxable. Occasional winning from premium bonds should not need to be declared. If you have a lot invested in premium bonds and treat the winnings as equivalent to interest then it is not so clear cut. I don't have any direct experience with dealing with the CRA on this issue, so it is just an opinion..

As for the tax-free 25% - aaaaaaaaaaaaaaaaaaaaaaagggggggggggggggggghhhhhhhhh hhhhhhh!

Re: CRA and UK premium bonds
 

Hi, I have asked the same question before, not that I've ever won anything much but do get regular small wins. I do not worry about declaring them, I just treat it as lottery winnings. In the event of a big win I'd pull the money here as I believe that NS&I and my UK bank report interest etc to CRA as I am registered with them as a Canadian taxpayer.

Re: CRA and UK premium bonds
 

well done.

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