When to pay tax on UK Premium Bonds?

[christhebrit]

Have some money in UK premium bonds, but not sure when exactly to declare taxes on any "winnings" that comes from it. Have it set to automatically reinvest any money that is gained:

1. All winnings when I do my 確定申告 at the end of the tax year
or
2. In the 確定申告 after I "cash out" and it hits my bank account

(Or something else?)

Have country set to Japan and added my number details already so Japan tax agency will be aware of the account.

[sutebayashi]

I imagine there is a specific date at which interest is paid, no? Even if you reinvest those proceeds, the date of the interest payment will surely be the date of the income event for which you’ll need to consider for tax purposes.

I report and pay tax interest income on money in a foreign bank account in such a manner. There is a method to count interest withhold at the source towards the Japan side income tax payment too.

There is flexibility around the forex rate you can use to convert it to yen amounts, but you are supposed to approach it consistently. I just use a forex rate from the date on which the interest was paid. Never had the Japanese authorities ask me about it, but it’s not huge sums to begin with.

[Beaglehound]

I would treat any winnings as paid on the date of the win and use that day's exchange rate to convert to yen, then declare it in that year's kakutei shinkoku. Whether it hits your bank account or not, you are still receiving the cash.

[christhebrit]

Good to know, thanks. Over the last 2 years I received:
2022: 350 GBP (~70,000 JPY)
2023: 625 GBP (~130,000 JPY)

Haven't declared either... am I correct in thinking that I can still post 確定申告 adjustments for up to 5 years and correct these?

[TunaSki]

Good to know, thanks. Over the last 2 years I received:
2022: 350 GBP (~70,000 JPY)
2023: 625 GBP (~130,000 JPY)

Haven't declared either... am I correct in thinking that I can still post 確定申告 adjustments for up to 5 years and correct these?

It depends on the definition of income that premium bonds winnings are defined as. My guess would be temporary income.

If my guess is correct then based on the amount you won per tax year, no tax would due, unless the total of all your temporary income from all temporary income sources exceeded ¥500,000 for that tax year.

So if the total of all temporary income is below ¥500,000 for that tax year, then you don’t need to declare the temporary income.

However, if the premiums bonds winnings is not temporary income, then you need to find out what type of income it is defined as.

[christhebrit]

Oh, that is interesting. I suspect I am getting into the realm of "check with a qualified professional" now but I appreciate the heads up there

[Roger Van Zant]

I just tried to sign up online for Premium Bonds, but since I am living out of the UK, I was told to call this number instead:
+44 1253 832007

Anyone gone this route before?

I still have my NatWest bank account in the UK, registered to my sister's address.

I presume if I am accepted and able to sign up, they will ask my for my Japanese "My Number" for tax purposes?

Thanks.

[Beaglehound]

I just tried to sign up online for Premium Bonds, but since I am living out of the UK, I was told to call this number instead:
+44 1253 832007

Anyone gone this route before?

I still have my NatWest bank account in the UK, registered to my sister's address.

I presume if I am accepted and able to sign up, they will ask my for my Japanese "My Number" for tax purposes?

Thanks.

Have considered it but I think the ID check requires lawyer's certification, so I haven't been motivated enough to go through with it yet. Let us know how it goes if you do.

[TunaSki]

I presume if I am accepted and able to sign up, they will ask my for my Japanese "My Number" for tax purposes?

Thanks.

Yes, you will need to give them you MyNumber. It will ask you for your Tax ID number which is where you put in your MyNumber

Also you will want to update your address to your Japanese address once the account is open. Otherwise giving an incorrect address could cause problems with any “winnings” you might win due to essentially giving them incorrect residency information