Tax on Prize Bonds

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clueless

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Does anyone know if you have to pay tax on encashed Prize Bonds that have been bought as a gift?
 
Do you know if there is a limit to the value of the bonds that one could receive before there would be a tax liability?
 
Forget about it being bonds for a minute. Any asset you receive falls under gift tax rules.

The amount depends on the relationship between the people.
If it's from a parent, you've a lifetime threshold of 310,000.
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There's also a small gift exemption. You can receive up to 3,000 from any person in any year, and ignore it for tax purposes.
 
I have prize bonds In joint name with my children for years. When I die, are the prize bonds considered inheritance if they are already in their joint names? Thank you.
 
"The amount depends on the relationship between the people.
If it's from a parent, you've a lifetime threshold of 310,000.
[broken link removed]"

So can I confirm that I understand this correctly. Any amount up to €310,000 can be given as a one off gift from a parent to a child without paying tax on it?
 
clueless said:
So can I confirm that I understand this correctly. Any amount up to €310,000 can be given as a one off gift from a parent to a child without paying tax on it?
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It doesn't have to be a one-off gift. It can be a series of gifts given over years, that add up to a total of €310,000. When the parent eventually dies, the same threshold applies and any gifts already given will be deducted from the €310,000 to establish if tax must be paid on the inheritance.

See the point above about the small gift exemption in post #4.
 
Reviving this thread as it's been a wee while. Anybody any recent experience with prize bonds and state savings investments. The marketing says these investments are all tax free but some may have to pay tax have you ever heard of anyone having to pay tax on these products and are they counted as part of the inheritance threshold
 
some is generic referring to products/individuals because of this satement on the Ireland State Savings website "While these products are tax-free, it is always advisable to review your own tax situation."

What if they are passed via a will and your threshold is used but they are joint and other party refuses to sign over the dosh - so in reality would inherit zero physically while simultaneously entire threshold is used
 
Tinaop said:
Reviving this thread as it's been a wee while. Anybody any recent experience with prize bonds and state savings investments. The marketing says these investments are all tax free but some may have to pay tax have you ever heard of anyone having to pay tax on these products and are they counted as part of the inheritance threshold
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The returns from holding this asset are tax-free.

That is a different matter to any possible CAT if this asset is transferred to another person.
 
Tinaop said:
What if they are passed via a will and your threshold is used but they are joint and other party refuses to sign over the dosh - so in reality would inherit zero even though entire threshold is used
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The same Prize bonds were willed to two beneficiares, to be split between the two beneficiaries?
 
They have matured and trapped so no returns anymore on the savings investments and the prize bonds indeed are to be split between 2 beneficiaries
 
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Inheritance Tax applies to the value of all assets that you inherit from a person. It doesn't matter if you inherit Prize Bonds or a valuable collection of rubber chickens. If the total value of everything you inherit from the person exceeds the relevant threshold, you'll pay Inheritance Tax on it. The threshold depends on your relationship to the person who died.

In themselves, Prize Bonds are tax free when you win on them or cash them in.
 
@ClubMan thanks ah by trapped I mean there is a 3 person joint account about to mature with the deceased but one won't budge to cash them in I understand nevertheless counts towards inheritance threshold but will never see the money unless one person dies due to survivorship clause
 
Tinaop said:
by trapped I mean there is a 3 person joint account about to mature with the deceased but one won't budge to cash them in I understand nevertheless counts towards inheritance threshold but will never see the money unless one person dies due to survivorship clause
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This sounds like a legal rather than a tax issue. From what you're saying, you've inherited a sum of money, but it's in what is now a joint account with one other living person. The other person does not want to cash in so you have no access to what you have inherited. I think you may need to take legal advice to see if you could possibly force them to cash in at least half to allow you to access it.
 
@Dave Vanian exactly I have no access to what I've inherited but nevertheless its counted as part of inheritance threshold @ClubMan thanks not UK Premium Bonds, they are Ireland State Savings. A solicitor can't do anything and Ireland State Savings are not exactly a pleasure to deal with...It means I will never receive my inheritance unless the other person kicks the bucket and if I do, my share would not even go to my estate
 
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