Premium bond prizes taxation

Information and questions about the Law in Spain and Andalucia.
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fyfin
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Premium bond prizes taxation

Postby fyfin » Sat Apr 14, 2018 10:15 am

I recently had a bit of a shocker when I found out that prizes from on-line gambling (wife's bingo) are taxed as income so if substantial can take you into a higher bracket. It was nice to win but I had assumed the tax would be at a flat rate of 20%.

I then got thinking about premium bond prizes which are tax free in UK. I stupidly assumed that it would be treated like a lottery i.e. only declare over €2,500 p.a. and then they would be taxed at a flat rate. My previous accountant agreed and so they (being small amounts) were not declared. Now I am being told by the new people (the previous English lady sold up and went back to UK) that they are a bond (which by definition they are) and prizes are actually earnings to be declared as such.

This is not a problem and I doubt if they would even find out for the small amounts, but, in the unlikely event that I should win £1,000,000 I dread to think what the tax would be if it was added to income and not at a flat rate.

I assume others have premium bonds and occasionally win so do you declare as interest or income or is it best to just not mention the smaller amounts. And what do you think would happen if you won one of the larger prizes?
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Miro
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Re: Premium bond prizes taxation

Postby Miro » Sat Apr 14, 2018 11:12 am

I always declared the winnings as income/interest. (Is there are differentiation?) Unfortunately (I guess) it never really made any significant difference to my tax. I never lost sleep over what I would do when the million came up: I'd be gone so fast, Hacienda wouldn't see me for dust!! (I did always hope it would come up in the first 6 months of the year, so I could legitimately become non-tax resident before scarpering)

P.S. now back in the UK, so not worrying about that scenario....and yes, still waiting :?
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fyfin
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Re: Premium bond prizes taxation

Postby fyfin » Sat Apr 14, 2018 3:16 pm

Lol Miro. Plan B then if I win the million. Back to Blighty or maybe not. I like it too much here. Good point about interest though - maybe that is taxed at a flat rate. I'll have to check but with online gambling they treat it as an occupation, so you only pay tax on net, winnings less losses.
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Unicorn
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Re: Premium bond prizes taxation

Postby Unicorn » Sun Apr 15, 2018 12:43 pm

If online gambling is treated as an occupation do you have to be autonima?

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fyfin
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Re: Premium bond prizes taxation

Postby fyfin » Sun Apr 15, 2018 9:21 pm

Unicorn, valid point and by the way I was given this link by Citizens Advice Spain which was very helpful
https://bingoonline.bingo/como-declarar ... go-online/
I also see that they have treated the winnings as autonomo but I guess without actually being autonomo . The tax on my return prepared by the accountant is referred to as " Importe del IRPF que corresponde a la Comunidad Autonoma de residencia del contribuyente "
A man likes his wife to be just clever enough to appreciate his cleverness, and just stupid enough to admire it

Manchesteral
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Re: Premium bond prizes taxation

Postby Manchesteral » Mon Apr 16, 2018 11:38 am

Consumers, ie horse racing gamblers do not pay tax on their winnings, so how come ??

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fyfin
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Re: Premium bond prizes taxation

Postby fyfin » Mon Apr 16, 2018 12:18 pm

If it's online in Spain you have to give your nie so they know your details already. I suppose of you have a Uk betting account you could get away with it.
A man likes his wife to be just clever enough to appreciate his cleverness, and just stupid enough to admire it


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