Wojciech

Diploma for Financial Advisers
Diploma in Accounting
Member of London Institute of Banking and Finance

Yes, premium bonds are tax-free! When you invest in premium bonds, any winnings you get are completely free from UK tax. This means that you don’t pay income tax or capital gains tax on any prize money you win.

Premium bonds are offered by NS&I (National Savings and Investments), and instead of earning interest, you enter a monthly prize draw for a chance to win between £25 and £1 million. It’s a risk-free investment backed by the government, making it a popular choice for those who want a safe place to save, with the added excitement of possibly winning.

Remember, though, that the returns are not guaranteed. You might win nothing or be lucky enough to win big, but either way, it’s all tax-free!