# Premium bonds UK



## Megsmum (Sep 9, 2012)

A relative is about to transfer an amount of premium bonds to us. My understanding is


We are allowed to own these, under both the Spanish and UK systems
We declare them on the next overseas asset declaration as they equate to an increase
Any winnings are taxable under Spanish law

Have I missed anything important?


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## Lynn R (Feb 21, 2014)

Megsmum said:


> A relative is about to transfer an amount of premium bonds to us. My understanding is
> 
> 
> We are allowed to own these, under both the Spanish and UK systems
> ...


The immediate thing that springs to mind is whether, as you are tax resident in Spain, the amount transferred into your name would be subject to Spanish gift tax?


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## Williams2 (Sep 15, 2013)

Megsmum said:


> A relative is about to transfer an amount of premium bonds to us. My understanding is
> 
> 
> We are allowed to own these, under both the Spanish and UK systems
> ...


H'm tell me if you have 3 Premium bonds ( since childhood ) with a face value of £3, do you declare
them as an asset even though its worth far less than any €50,000 asset declaration ? or only
if you should win in excess of €2,500 on the Premium bond for tax declaration purposes ?


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## Megsmum (Sep 9, 2012)

Lynn R said:


> The immediate thing that springs to mind is whether, as you are tax resident in Spain, the amount transferred into your name would be subject to Spanish gift tax?


Thanks Lynn I’ll look into that


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## snikpoh (Nov 19, 2007)

Williams2 said:


> H'm tell me if you have 3 Premium bonds ( since childhood ) with a face value of £3, do you declare
> them as an asset even though its worth far less than any €50,000 asset declaration ? or only
> if you should win in excess of €2,500 on the Premium bond for tax declaration purposes ?


If the value in that asset class is less than 50k (actually only £3 maybe), why would you declare it?

The rules are clear surely.


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## Williams2 (Sep 15, 2013)

snikpoh said:


> If the value in that asset class is less than 50k (actually only £3 maybe), why would you declare it?
> 
> The rules are clear surely.


Why indeed although are British Premium bond winnings in excess of €2,500 treated the same as Lottery winnings
in Spain ( eg the EuroMillions lottery ) and therefore taxable at 20 per cent ?


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## Megsmum (Sep 9, 2012)

Williams2 said:


> Why indeed although are British Premium bond winnings in excess of €2,500 treated the same as Lottery winnings
> in Spain ( eg the EuroMillions lottery ) and therefore taxable at 20 per cent ?


As far as I can tell, yes


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## Lynn R (Feb 21, 2014)

If Pedro Sánchez keeps his word and if the Presupuestos Generales for 2018 ever get final approval, then the amount of lottery winnings exempt from this tax will rise to €10k in 2018, €20k in 2019 and €40k in 2020. 

Los Presupuestos elevarán a 10.000 euros el importe exento de pagar impuestos de premios y loterías - Bolsamanía.com


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## Williams2 (Sep 15, 2013)

Lynn R said:


> If Pedro Sánchez keeps his word and if the Presupuestos Generales for 2018 ever get final approval, then the amount of lottery winnings exempt from this tax will rise to €10k in 2018, €20k in 2019 and €40k in 2020.
> 
> Los Presupuestos elevarán a 10.000 euros el importe exento de pagar impuestos de premios y loterías - Bolsamanía.com


Bring it on - as that's the only pitfall with Expating in Spain, no tax free lunches ( ISA's SIPP's, tax free lottery
winnings, etc, etc ) from the Hacienda !!

Still no doubt for CDS Expats, dependable hot sunny weather makes up for these shortcomings.


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