US Income Tax on UK Premium Bond Winnings?
#1
US Income Tax on UK Premium Bond Winnings?
Does anybody know whether as an LPR am I liable for US income tax on UK Premium Bond winnings? I don't intend to repatriate any of the funds, but I guess that makes no difference at all if I am liable.
Nettie
Nettie
#2
Re: US Income Tax on UK Premium Bond Winnings?
Originally Posted by nettlebed
Does anybody know whether as an LPR am I liable for US income tax on UK Premium Bond winnings? I don't intend to repatriate any of the funds, but I guess that makes no difference at all if I am liable.
Nettie
Nettie
#3
Re: US Income Tax on UK Premium Bond Winnings?
Originally Posted by nettlebed
Does anybody know whether as an LPR am I liable for US income tax on UK Premium Bond winnings? I don't intend to repatriate any of the funds, but I guess that makes no difference at all if I am liable.
Nettie
Nettie
#4
Country Member
Joined: May 2003
Location: Moved from Georgetown to Round Rock, Texas. 15 miles closer to civilization.
Posts: 936
Re: US Income Tax on UK Premium Bond Winnings?
Originally Posted by nettlebed
Does anybody know whether as an LPR am I liable for US income tax on UK Premium Bond winnings? I don't intend to repatriate any of the funds, but I guess that makes no difference at all if I am liable.
Nettie
Nettie
A) Nobody.
Tell 'em nowt, pay them less.
-
#5
BE Forum Addict
Joined: Mar 2003
Location: Florida
Posts: 1,296
Re: US Income Tax on UK Premium Bond Winnings?
I think, if you declare it- it will probably come under gambling earnings, which means you'll get clobbered for up to 60% tax (like lottery wins).
Keeping the money in UK- you only have to declare bank accounts with balances of 10,000 or over (at least that's what it used to be). Banks in the UK now have to inform the IRS of account holders interest earnings etc...banks offshore, eg Jersey, don't.....
I don't know about Endowment policies- but one of mine (tax free in UK) matured a few years back and I just banked the cheque in Jersey. I figured Uncle Sam made so much out of us during the 8 years we waited for our green cards (and got flipping creamed taxwise), he owed us one LOL.
Keeping the money in UK- you only have to declare bank accounts with balances of 10,000 or over (at least that's what it used to be). Banks in the UK now have to inform the IRS of account holders interest earnings etc...banks offshore, eg Jersey, don't.....
I don't know about Endowment policies- but one of mine (tax free in UK) matured a few years back and I just banked the cheque in Jersey. I figured Uncle Sam made so much out of us during the 8 years we waited for our green cards (and got flipping creamed taxwise), he owed us one LOL.
Last edited by Taffyles; Jun 21st 2005 at 4:19 pm.
#6
Re: US Income Tax on UK Premium Bond Winnings?
Originally Posted by nettlebed
Does anybody know whether as an LPR am I liable for US income tax on UK Premium Bond winnings? I don't intend to repatriate any of the funds, but I guess that makes no difference at all if I am liable.
Nettie
Nettie
they just automatically invest it into more bonds....
Usually just 50 or 100 GBP though ..never had a big win yet...
#7
Re: US Income Tax on UK Premium Bond Winnings?
Originally Posted by dunroving
If you live in the US, does the US "honor" the tax-free status of a UK endowment policy? Don't mean to hijack your thread but it seems like a related question.
They advised I didn't have to pay tax on the gains made by the ISAs but they were not 100% certain of this - however I also had losses that could be set against the gains even if I did have to declare them so they didn't feel it was a risk for me to interpret things this way - their advice may have been different if I had not had the fall back.
This was from one of the big corporate tax companies paid for as part of my relocation - we're on our own next year
#8
Re: US Income Tax on UK Premium Bond Winnings?
Originally Posted by Ray
I win 9/10 months out of every 12 months for the last 10 years...
they just automatically invest it into more bonds....
Usually just 50 or 100 GBP though ..never had a big win yet...
they just automatically invest it into more bonds....
Usually just 50 or 100 GBP though ..never had a big win yet...
#9
Just Joined
Joined: Jun 2004
Location: Somerville, ,MA
Posts: 15
Re: US Income Tax on UK Premium Bond Winnings?
Ernie told me that I had to sell my quota of premium bonds when I moved to the US as they were not allowed under the US postal rules to send lottery winning by US mail.?? I suppose I could have re-invested.
I never really had any decent winnings so I wasn't that bothered.
I never really had any decent winnings so I wasn't that bothered.
#10
Re: US Income Tax on UK Premium Bond Winnings?
Originally Posted by andy620
Ernie told me that I had to sell my quota of premium bonds when I moved to the US as they were not allowed under the US postal rules to send lottery winning by US mail.?? I suppose I could have re-invested.
I never really had any decent winnings so I wasn't that bothered.
I never really had any decent winnings so I wasn't that bothered.
#11
Re: US Income Tax on UK Premium Bond Winnings?
Originally Posted by andy620
Ernie told me that I had to sell my quota of premium bonds when I moved to the US as they were not allowed under the US postal rules to send lottery winning by US mail.?? I suppose I could have re-invested.
I never really had any decent winnings so I wasn't that bothered.
I never really had any decent winnings so I wasn't that bothered.
We'd just left ours with my Mums UK address on cos it was easier, and she pops the winnings in the bank when they arrive - running about 4% return at the moment...slightly less than the bank, but theres always the chance of the big one.....