- Premium Bond winnings are fully taxable in France as interest income — the UK's tax-free exemption has no standing once you're a French tax resident
- There is no minimum threshold — every pound won must be declared, however small the prize
- Winnings go on Form 2047 first, then carry across to Box 2TR on Form 2042
- The NS&I account itself must also be declared separately on Form 3916 every year, even if no prize was won
Yes — if you're a French tax resident, your NS&I Premium Bond winnings are taxable in France, however small the prize. The UK's "tax-free" exemption is a domestic UK rule. It has no standing once you've become a French tax resident, because France taxes its residents on worldwide income, not just what's earned on French soil.
Why a UK "Tax-Free" Product Becomes Taxable Here
Premium Bonds don't pay interest in the conventional sense — NS&I enters every £1 bond into a monthly prize draw instead. In the UK, any prize you win from that draw is genuinely tax-free, and that's the entire selling point of the product for UK residents.
France doesn't classify income by what a product is called in its home country — it looks at what the payment functions as. A Premium Bond prize functions as a return on a fixed-capital investment, paid out periodically, which makes it interest income under French classification.
Article 120 of the French General Tax Code specifically brings redemption premiums and "lots" (prizes) on foreign bonds into the scope of French income tax, and Article 4 A taxes French residents on worldwide income regardless of source. Between the two, there's no route around it: the source of the win doesn't matter, your residency does.
This is the same principle that makes ISAs fully taxable in France — none of the UK's domestic tax wrappers carry their exemption across the border. See our guide to ISAs and SIPPs in France for the full picture on how UK financial wrappers are treated as a French resident.
Where to Declare It
There's no minimum threshold and no small-winnings exception — every pound won gets reported, whether it was £25 or £4,000 across the year.
- Convert your total Premium Bond winnings for the year into euros using the Banque de France rate. See our exchange rate guide for which rate to use.
- Report the figure on Form 2047 (the foreign income declaration) first.
- Carry that total across to Form 2042, your main tax return.
- Enter it in Box 2TR, the box for this category of foreign interest income.
Does the UK-France Tax Treaty Help?
No, not in the way people assume. The France-UK double tax treaty (signed 19 June 2008) actually confirms the French position rather than undermining it — Article 12 defines interest from government securities, which is how Premium Bond prizes are treated, as taxable only in the taxpayer's state of residence. If you live in France, that's France.
This is a common point of confusion: a tax treaty protects you from being taxed twice on the same income. It doesn't mean you avoid tax altogether.
What About Social Charges?
Once declared as interest income, Premium Bond winnings are also subject to French social charges (prélèvements sociaux) on top of income tax — the two stack rather than one replacing the other. You have two calculation routes:
- The PFU (flat tax) — a single combined rate of 31.4% covering both income tax and social charges
- The barème progressif — France's progressive income tax scale, with social charges calculated separately
Which is cheaper depends on your household's total taxable income and quotient familial for the year. See our guide to PFU vs Progressive Tax to understand which route is likely to work out better for you.
Premium Bonds Versus Other UK Savings Products
The pattern with Premium Bonds isn't unique — it's the same story with most UK tax-advantaged products once you're a French resident.
| UK Product | Tax-Free in UK? | Tax-Free in France? |
|---|---|---|
| Premium Bonds (NS&I) | Yes | No — taxed as interest income |
| ISAs | Yes | No special status — fully taxable |
| Standard UK bank interest | Taxable | Taxable, declared via Form 2047 |
If you're weighing up whether to keep an ISA open at all once you've relocated, see our guide to ISAs and SIPPs in France — closing one means losing the UK tax wrapper permanently, which is a decision worth thinking through carefully.
Don't Forget the Account Itself
If you hold NS&I Premium Bonds, you almost certainly need to declare the account they sit in, separately from the winnings themselves. French residents must declare foreign financial accounts on Form 3916 as part of their annual return — this is required regardless of whether the account generated any income that year. For more on the foreign account declaration obligation, see our guide to declaring foreign bank accounts in France.
Common Mistakes
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Assuming small wins are beneath reporting. There's no de minimis exemption for foreign interest income in France — every pound counts, regardless of size.
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Assuming the UK-France treaty exempts Premium Bonds from French tax. It confirms the opposite — interest from government securities is taxed in your country of residence.
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Forgetting to declare the Premium Bonds account itself on Form 3916, separately from the winnings.
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Not comparing the PFU flat tax against the barème progressif. Which one is cheaper depends entirely on your total household income. When using the online declaration system, it will flag a warning if another tax treatment is more advantageous.
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Assuming an ISA or other "tax-free" UK product carries its exemption into France. None of them do — French tax law doesn't recognise the UK wrapper.
Frequently Asked Questions
Are Premium Bond winnings really taxable if I live in France?
Yes. As a French tax resident, your Premium Bond winnings are taxable in France under Articles 4 A and 120 of the French General Tax Code, regardless of how small the prize is.
Where do I declare Premium Bond winnings on my French tax return?
Report the total on Form 2047 first, then carry it across to Form 2042, entering the figure in Box 2TR — the box for this category of foreign interest income.
Does the UK-France tax treaty protect Premium Bond winnings from French tax?
No. The 2008 UK-France double tax treaty confirms that interest from government securities, which includes Premium Bond prizes, is taxable only in your country of residence — France, if that's where you live.
Is there a minimum amount below which I don't need to declare Premium Bond winnings?
No. There's no de minimis exemption for foreign interest income in France, so every pound won must be declared regardless of size.
Do I pay social charges on top of income tax for Premium Bonds?
Yes. Once declared as interest income, winnings are subject to both French income tax (via the PFU flat tax or the progressive scale) and social charges on top.
Should I close my Premium Bonds now that I live in France?
That depends on your wider financial picture. What's certain is that the tax obligation continues every year you hold them as a French resident — some people weigh it against alternatives like Assurance Vie instead, but that's a personal decision. It's recommended to get an assessment from an independent financial adviser who specialises in financial products in France.