US Income Tax on UK Premium Bond Winnings?
#17
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Location: North Norfolk and northern New York State
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#18
Re: US Income Tax on UK Premium Bond Winnings?
While you can hold them, if you won the million prize you might have a harder time trying to claim it. Ie they may require a lot more proof of residence. If they got wind of the fact you lived in America they may be able to wriggle out of paying.
#19
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Re: US Income Tax on UK Premium Bond Winnings?
In my case, my bond holder account was set up maybe forty years ago, at an address that no longer exists. I can only set up online access to the account by first submitting a change of address form via regular mail, to a valid UK address like my sister's. Or I could simply do nothing, since my unclaimed prize will sit there indefinitely, waiting to be claimed when I am able to update my account ...
#20
Re: US Income Tax on UK Premium Bond Winnings?
There is nothing in the terms and conditions that allows them to refuse to pay and if they tried, they would end up in court. However, the payment would most likely be taxable in the United States.
#21
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Re: US Income Tax on UK Premium Bond Winnings?
Yes .. I've filed the FBAR for several years, because I have some foreign bank accounts. But I have to admit that I forgot to include my premium bonds. I only have a small holding of them, maybe twenty or thirty pounds in total. I suppose I should include them in future years. I know there are some people who (semi facetiously?) maintain that you should include that years highest balance on your TfL Oyster Card, too.
#22
Re: US Income Tax on UK Premium Bond Winnings?
In my case, my bond holder account was set up maybe forty years ago, at an address that no longer exists. I can only set up online access to the account by first submitting a change of address form via regular mail, to a valid UK address like my sister's. Or I could simply do nothing, since my unclaimed prize will sit there indefinitely, waiting to be claimed when I am able to update my account ...
All other correspondence from NS&I comes direct to our address here with no problems. I don't think there are any UK residence restrictions on ownership of most NS&I products - we have Index Linked, Fixed and Variable rate bonds as well as the PB, and they are fully aware of our residence situation on those.
I declare them all, but I have to say, I'm not sure whether our accountant files the PB winnings as gambling or overseas interest. There was a discussion about them when we first started, but can't remember what the outcome was - the point mentioned earlier about the stake not being at risk was raised, and I think on that basis he said to file it as interest, but I'm not sure. I guess it will all come out if we are ever audited!
#23
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Joined: Jul 2007
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Re: US Income Tax on UK Premium Bond Winnings?
I've had a problem setting up online access as well - I assumed it was because we were overseas, although I'm not sure why that should matter. We certainly have all the correct address info - just never got past the screen that says they will send a logon code or password or something. So I get all our PB winnings sent to my mams UK address, just because its easier for her to pop into the bank to deposit them, rather than the checks doing a double transatlantic trip.
All other correspondence from NS&I comes direct to our address here with no problems. I don't think there are any UK residence restrictions on ownership of most NS&I products - we have Index Linked, Fixed and Variable rate bonds as well as the PB, and they are fully aware of our residence situation on those.
I declare them all, but I have to say, I'm not sure whether our accountant files the PB winnings as gambling or overseas interest. There was a discussion about them when we first started, but can't remember what the outcome was - the point mentioned earlier about the stake not being at risk was raised, and I think on that basis he said to file it as interest, but I'm not sure. I guess it will all come out if we are ever audited!
All other correspondence from NS&I comes direct to our address here with no problems. I don't think there are any UK residence restrictions on ownership of most NS&I products - we have Index Linked, Fixed and Variable rate bonds as well as the PB, and they are fully aware of our residence situation on those.
I declare them all, but I have to say, I'm not sure whether our accountant files the PB winnings as gambling or overseas interest. There was a discussion about them when we first started, but can't remember what the outcome was - the point mentioned earlier about the stake not being at risk was raised, and I think on that basis he said to file it as interest, but I'm not sure. I guess it will all come out if we are ever audited!
#24
Re: US Income Tax on UK Premium Bond Winnings?
Looking at the NS&I website the other day, prompted by this thread, I was interested in their other products, such as indexed linked and fixed rate bonds. For the ones I looked at, it seemed that the issue was closed, no longer available. What do they still offer, do you know?
#25
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Joined: Mar 2012
Location: Kissimmee
Posts: 165
Re: US Income Tax on UK Premium Bond Winnings?
If you live in the USA, you can't claim UK Premium Bond winnings. I know, it has just happened to me. I won, tried to claim and the law prevents them from sending money to the USA. In addition, once they know you live in the USA, they won't even pay it to a UK address unless you can prove residence. They advised me to cash in my bonds.
#26
Re: US Income Tax on UK Premium Bond Winnings?
If you live in the USA, you can't claim UK Premium Bond winnings. I know, it has just happened to me. I won, tried to claim and the law prevents them from sending money to the USA. In addition, once they know you live in the USA, they won't even pay it to a UK address unless you can prove residence. They advised me to cash in my bonds.
http://www.nsandi.com/savings-premium-bonds
#27
Forum Regular
Joined: Mar 2012
Location: Kissimmee
Posts: 165
Re: US Income Tax on UK Premium Bond Winnings?
Read the terms and conditions, then consider whether you should take legal action against them. They may well have acted illegally. They have to pay into a United Kingdom bank account.
http://www.nsandi.com/savings-premium-bonds
http://www.nsandi.com/savings-premium-bonds
#28
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Joined: Apr 2011
Location: The Shire
Posts: 1,117
Re: US Income Tax on UK Premium Bond Winnings?
http://www.economist.com/blogs/buttonwood/2013/08/tax
Last edited by theOAP; Aug 18th 2013 at 9:01 pm.
#29
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Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,453
Re: US Income Tax on UK Premium Bond Winnings?
Robin, you might enjoy this. On cue, here's one of them. We can guess who the tax advisor might be.
http://www.economist.com/blogs/buttonwood/2013/08/tax
http://www.economist.com/blogs/buttonwood/2013/08/tax
The article mentions Post Office international reply coupons. I remember when my parents started to travel abroad, early sixties, they used to buy a dozen or so international reply coupons. That way, they could send postcards home from Switzerland without having to use scarce foreign currency (in those days you were limited in the amount of cash you could take abroad ... If you went to the bank to change pounds into foreign currency, the bank had to record the transaction in your passport to prevent double dipping.)