Financial & Legal

Premium Bond winnings taxable in France?

bruce writes in Financial & Legal

I went to my local French tax office to ask where on the 2012 tax forms I should declare my 2011 Premium Bond winnings. After several phone calls by my advisor the head of the advisory section appeared and said quite adamantly that I do not declare them!
Recently I asked the UK NS&I about declaring UK Premium Bond winnings in France. I was told by my advisor - I waited while discussions were going on in the background between her and her technical advisor - that after June 2012 the NS&I will be reporting winnings to the HM Revenue & Customs which in turn will report them to the relevant French tax authority.
Any comment on the above please?

Posted on: 29/05/2012 at 14:06

Yes, they should be declared in France. Local Tax offices are notorious for not understanding "unusual" tax situations.

Posted on: 29/05/2012 at 14:42

And you pay CSG (social tax) on the total amount of winnings.

Posted on: 29/05/2012 at 16:05

I was always under the impression that you couldn't hold Premium Bonds if you lived outside the UK!

Posted on: 29/05/2012 at 16:22

Thank you Little Ann, I have looked further into this and I am satisfied that PB winnings are taxable, but what do I do now?

I could just do as they say - don't declare them - but I don't want to be penalised later on when they find out through their official channels that I should have declared them.
Do you know which box on the forms I should fill in, because I'm going back to see them to sort this out.

Posted on: 29/05/2012 at 17:34

Hi,
Box 2TS on 2042 ; but why not put them in the name of a trusted UK resident family member?

Posted on: 29/05/2012 at 17:59

or, why not, having asked the tax office & got a reply, believe them and ask them to put it in writing & sign it & have done with it. You have got a cast iron defence then if they ever query it in the future, which is probably unlikely.

Posted on: 29/05/2012 at 18:43

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