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Premium bond winnings

Premium bond winnings

Old Jan 5th 2024, 5:20 pm
  #1  
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Default Premium bond winnings

Premium Bonds are one of the few places non residents of the UK are allowed to have their savings. I have never put the small winnings I've had so far on the pt tax return - I got the idea from somewhere that if it was less than a certain amount you didn't have to. Recently I won £500 so now think maybe I ought to but I have no idea where to put it or
if I have to - does anyone else declare them and if so where? Thanks
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Old Jan 7th 2024, 2:53 pm
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Default Re: Premium bond winnings

Not from personal experience but from a working knowledge of the tax system.

Yes, you should declare (all) Premium Bond gains on your PT tax return. They would go in Anexo J, Quadro 8 (Categoria E - Rendimentos Capitais) using Codigo E22.

You have an option to exercise as to whether they are taxed at the normal PT withholding rate of 28%, or to opt for englobamento, in which case they will be taxed at scale rates, taking all other income into account. If you opt for englobamento, all other income in Category E must also be declared here.
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Old Jan 8th 2024, 5:32 pm
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Default Re: Premium bond winnings

That's really helpful, thanks Red Eric
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Old Jan 9th 2024, 9:10 pm
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Default Re: Premium bond winnings

Originally Posted by Fluffyhead
That's really helpful, thanks Red Eric
Thanks for the thanks

I'm going to qualify one of my statements above because as it stands, it's not entirely accurate.

When I said :
If you opt for englobamento, all other income in Category E must also be declared here
...what I should have said was, you must opt for englobamento for all other income in Category E.

As you can probably already see, it's obligatory to declare foreign-sourced Cat E income on Anexo J, Q8, so it goes without saying that anything else of that nature arising in the UK would have to be declared here. The salient point I should have made clearer is that if you opt for englobamento for that, you must also declare PT-sourced Cat E income on the appropriate other Annex and opt for englobamento of that (as opposed to the otherwise perfectly valid options of not declaring it and leaving it to be taxed at the withholding rate, or declaring it and not opting for englobamento)

I hope that makes some sense.
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Old Jan 22nd 2024, 6:17 pm
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Default Re: Premium bond winnings

Hello again Red Eric - Thanks for thanking my thanks!
Sorry I've been so long in replying - overloaded with so many other things including UK tax returns!
I haven't had time yet to look into Cat E income but englobamento is a minefield we used to walk through every year. It's a pain that you can't simulate your tax online because of foreign income. We have learned to avoid the minefield by submitting a return including englobamento and then submit it without englobamento and choose the one in our favour!
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