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Old 11.04.2007, 19:49
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UK Premium Bonds

Can anyone tell me the Swiss tax situation with respect to premium bonds held in the UK? Presumably, they are subject to wealth tax, but what about any winnings. Are these treated as income, or (since they are free of tax in the UK) is this not the case?

Many thanks
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Old 28.04.2007, 15:42
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Re: UK Premium Bonds

No comments?
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Old 28.04.2007, 17:37
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Re: UK Premium Bonds

Just don't tell the Swiss.

Nick
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Old 28.04.2007, 19:28
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Re: UK Premium Bonds

It is a lottery. Prize money is not taxable.
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Old 28.04.2007, 19:39
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Re: UK Premium Bonds

Quote:
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It is a lottery. Prize money is not taxable.
You sure?
Subject to income tax, no?

But of course, don't tell the Swiss...
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Old 28.04.2007, 19:46
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Re: UK Premium Bonds

Haven't asked at the Swiss tax office (and won't) but I cannot see how prize money becomes taxable. It isn't income in the sense of a guaranteed rate of return. Certainly in UK it is not decalarable as income, so in the eyes of the 'giver' it isn't income, just prize money.
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Old 07.08.2014, 19:21
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Re: UK Premium Bonds

Reviving this old thing...

I've just moved from the UK and have some pitiful amount of premium bonds... but can still win a million right?

So would that be treated as lottery winnings by the swiss tax people or interest income?

having said that.. still better to have 650k left than 0k!
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Old 08.08.2014, 08:45
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Re: UK Premium Bonds

Winnings in the Swiss loto are taxed (at source), so in theory at least they're supposed to be declared.
As others have said, I wouldn't bother. If you win a million deal with the problem at that time.
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Old 14.01.2019, 10:49
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Re: UK Premium Bonds

Bump...thinking about using UK premium bonds as a store of some cash savings to avoid poor interest rates.

Anyone know if all returns would be classed as ‘income’ for tax purposes and just added to my other earnings, or if they would be handled by the tax authorities similar to lottery winnings or similar?

Eg according to https://www.baselland.ch/politik-und...ichem-vermogen according to my interpretation if classed as lottery winnings only individual ‘wins’ above 1000chf would be taxable?

If true this could be a nice way to earn some tax free returns as the likely individual prizes if any on my relatively small purchase would be £25/£500.

Profits from lotteries, sports betting and similar events are also taxable. The stakes spent on this can be deducted as costs. As of 2013, new lottery prizes will be exempt from withholding tax up to CHF 1'000.00. This exemption limit will apply from January 1, 2014 for both state and direct federal taxes. It will also apply now that 5% of the game prize, but no more than CHF 5,000.00, can be claimed as the cost of acquisition. Profits over CHF 1'000.00 are taxable without consideration of this exemption limit.
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Old 14.01.2019, 12:33
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Re: UK Premium Bonds

So personally, I hand my documents to a Truehand each year and they deal with it. Rightly or wrongly no winnings is declared, only the value on the 31 December. As far as I am aware this is then dealt with as wealth.


Unfortnuately I am in the situation where the winnings are 25 quid here and there, so year on year there is no major jump.


I guess if you won the million, you have bought yourself a little wiggle room and a couple of hundred to sit down with an advisor to get proper advise would be, in the grand scheme of things, a drop in the ocean.
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  #11  
Old 16.01.2019, 20:33
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Re: UK Premium Bonds

Quick update after I contacted the Baselland tax office:

Winnings from premium bonds are taxable in the same way as income from other movable assets, eg dividends etc. Winnings are not taxed as lottery wins.

Incidentally they did say that a new law came in to force on 1st Jan 2019 stating that lottery winnings up to CHF 1m are exempt from income tax. Excess winnings above 1m (minus CHF 5000 cost allowance) are taxable as income.
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