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Where Taxpayers and Advisers Meet

gifting out of income: Premium Bonds

strawn
Posts:96
Joined:Fri Jun 01, 2012 10:11 am
gifting out of income: Premium Bonds

Postby strawn » Sun Oct 22, 2023 9:49 pm

If you own enough Premium Bonds you will receive a (very) roughly uniform stream of income each month. It would be a more even annual stream if added up over each tax year.

Can it be viewed as income for the purpose of IHT-free regular annual gifts out of surplus income?

(I am not implying that if you won a million pound prize it could plausibly be viewed as income.)

pawncob
Posts:5124
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: gifting out of income: Premium Bonds

Postby pawncob » Mon Oct 23, 2023 9:26 am

PSBs are exempt from all forms of taxation (except IHT)
https://www.accountingweb.co.uk/any-answers/premium-bonds-wins-treated-as-income-or-capital
With a pinch of salt take what I say, but don't exceed your RDA


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