Are Premium Bond winnings post death income or capital?


I know there is some debate as to whether Premium Bond winnings, received after the date of death, should be treated as income or capital. How do most people treat them?


I have treated prizes as an accretion to capital.

However, if a prize is substantial and there are different interests in capital and income, it might be worth getting a quick opinion from Chancery counsel as I suspect both sets of beneficiary might well claim the prize is theirs. If it’s a £1 million prize, we could end up with judicial guidance.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals