Tax on UK Premium Bonds

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IndefiniteLeave

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Good afternoon,

Does anyone have first-hand experience of how winnings from UK Premium Bonds are dealt with in Ireland?

I have consulted the Revenue website, as well as several AIs. Revenue doesn't seem to provide specific information and the considered opinion of our new overlords, presumably also relying heavily on Revenue, is "Yes", "No", "Don't know" and "Don't know, but won't admit it".

I'd be grateful for solid information, preferably supported by reference to any official documentation that might be relevant.
 
Any use?

Can an Irish citizen buy UK Premium Bonds

Can an Irish resident purchase UK premium bonds ? If so how do the odds of winning compare to prize bonds ? If so are any winnings taxable and if so at what rate ?
www.askaboutmoney.com

Prize and premium bonds - is the Duke about?

Dear @Duke of Marmalade Have you updated that wonderful spreadsheet you did back in 2023 for returns on €50k in Prize Bonds? As none of us know anything other than that the next while could be "interesting", and we should never try to time the markets, 73 yo husband is wondering what to do...
www.askaboutmoney.com
 
After checking directly with Revenue, I am responding to my previous question.

Winnings from UK Premium Bonds ARE taxable in Ireland. On Form 11 they should be included in the foreign income section - "other foreign income".
 
Revenue can and do get things wrong. I wouldn't depend on the word of their customer support alone especially if the sums involved are significant.
 
What should I do? Would it be worth making a further enquiry, this time pointing out that the UK Premium Bond system is a form of lottery?
 
That's your call but I and many others here have first hand experience of Revenue giving incorrect information on tax matters and if you act on such incorrect information they won't accept it as a valid defence for mistakes in your tax affairs. If the sums involved are significant you might want to get independent tax advice on the matter.
 
ClubMan said:
Revenue can and do get things wrong. I wouldn't depend on the word of their customer support alone . . .
Click to expand...
No harm in double-checking. But "Yes, they're taxable in Ireland" is the answer you would expect. There are obvious reasons why Ireland would grant a tax exemption to encourage investment in Irish government securities, but why would they grant tax exemptions to encourage investment in securities issued by foreign governments?
 
My two pence worth is that premium bonds are gambling and thus tax free, if you are winnings are a few hundred I would not worry but if they are tens of thousands it might be best to get tax advice. Either way best of luck with the bonds.
 
You could say you are gambling with the interest, but I doubt that makes them tax-free. If there is no specific Revenue documentation then they should be taxed like any other foreign non-deposit income.
 
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