Can you hold premium bonds if you live overseas?
Can I save with Premium Bonds? If you live outside the UK, please check if local regulations let you hold Premium Bonds. For example, the US has strict gaming and lottery laws which mean that it might not be possible or practical to hold Premium Bonds while in the US.
A child's parent or legal guardian can buy premium bonds for a child living abroad. It's important to note that the child must own a UK bank account or building society account for the prize money to be paid into if they win.
You must tell your ISA provider as soon as you stop being a UK resident. However, you can keep your ISA open and you'll still get UK tax relief on money and investments held in it. You can transfer an ISA to another provider even if you are not resident in the UK.
Calling from outside the UK
You can use our dedicated number: +44 1772 329880.
There are some places you can make a return, where it won't count towards your PSA, like: Cash and Stocks and Shares ISAs. Prizes from Premium Bonds.
If you live outside the UK, please check if local regulations let you hold Premium Bonds. For example, the US has strict gaming and lottery laws which mean that it might not be possible or practical to hold Premium Bonds while in the US. If you're allowed to hold them, you'll need to apply first by post.
The U.S. Treasury doesn't let just anyone purchase I bonds, so you'll need to see if you qualify to buy them. You'll need to be one of the following: A U.S. citizen, even if you live abroad. A U.S. resident.
The main attraction of investing in premium bonds is that any winnings have always been tax-free in the UK. However, this is not the case once you become a resident of Spain. Gains from bonds will be added to your general income for the year and taxed at the progressive rates of income tax.
Yes, non-resident aliens are able to open US bank accounts. They still need to provide the required documentation to prove their identity, address, and employment as well as a US Taxpayer document.
Standard Bank Optimum Account
Ideal for expats needing sterling, dollar (US and AU), or euro transactional banking, flexibility across borders, access to FX, savings, and lending services, and digital solutions like internet and mobile banking. Key Details: Minimum Balance: £5,000 (currency equivalent applies).
Do I have to declare Premium Bonds as savings?
Tax and you do not need to declare it on your tax return. Anybody over the age of 16 can buy Premium Bonds, and you can also buy them on behalf of your child or grandchild.
How to claim Premium Bonds after a death. The Executor can trace and claim Premium Bonds belonging to the deceased either online or by post. If applying by post, they must include a copy of the death certificate and the Will. If applying online, the Executor must complete a bereavement claim form.
You must be 16 or over to buy Premium Bonds. This can be done online at nsandi.com, over the phone (freephone 08085 007 007) or by completing an application form and posting to: National Savings and Investments, Glasgow G58 1SB.
Premium Bonds are a useful and popular savings tool. However, it is important to remember that if you die, your Premium Bonds become part of your Estate. This means they could be liable for Inheritance Tax, which is payable at up to 40% above a certain threshold.
| Total income | Income Tax band | Personal Savings Allowance |
|---|---|---|
| £12,571 to £50,270 a year | Basic rate | £1,000 a year |
| £50,271 to £125,140 a year | Higher rate | £500 a year |
| Above £125,141 a year | Additional rate | £0 (people earning this much money have no Personal Savings Allowance) |
Are Premium Bonds safe and secure? Your money is secure, since Premium Bonds are fully backed by the government.
Premium Bonds under various names exist or have existed in various countries. Similar programmes to UK Premium Bonds include: In the Republic of Ireland, Prize Bonds also originated in early 1957.
Therefore, the expatriate may purchase millions of dollars worth of CDs, bonds, etc. to generate some stable income. When the interest income is interest income, U.S.-sourced, and qualifies as portfolio income — it is not taxable to the nonresident alien owner of the bond.
You cannot put money into an ISA after the tax year that you move. This means that you can still put money into the ISA in the tax year that you move. You need to be resident in the UK to open a new ISA.
- High-yield savings accounts.
- Money market funds.
- Short-term certificates of deposit.
- Series I savings bonds.
- Treasury bills, notes, bonds and TIPS.
- Corporate bonds.
- Dividend-paying stocks.
- Preferred stocks.
Can I transfer premium bonds to a family member?
But you will still need to be able to prove their identity and where they live – and you'll need to nominate a parent or guardian to manage the bonds for them.
Premium Bonds
You can invest from £25 up to £50,000 in total. Premium Bonds don't pay any interest. Instead your Bonds enter a monthly prize draw for a chance to win tax-free prizes.
Once you become a resident of Portugal, any gains you receive from Premium Bonds will be subject to taxation, allowing the Portuguese authorities to share in your good fortune.
Whilst premium bonds and ISA's are very tax efficient in the UK, they are fully subject to income tax in Spain. In fact, they are not tax efficient investments to hold in Spain at all.
You have to keep your Bond for the whole of the chosen term – you can't cash it in before then. You will however have the right to cancel your investment within the first 30 days.
