Tax implications & National Lottery Syndicates.

zee1120

First of all I would like to apologise if I have posted this question in a wrong section, I'm new to MSE and this was not my intention.

Say I won a large sum of money whilst in a syndicate (hypothetically speaking), and I transferred 50% of the sum of the winnings to the other member of this syndicate.

Would I be liable for any tax? considering it is prize money to begin with.

Thank you for your help guys!

Zeeshan.

System

From http://www.national-lottery.co.uk/player/p/help/playinginstore/faqs.ftl

Are my winnings tax free?

National Lottery Prizes are not chargeable gains for the purposes of UK Capital Gains Tax and will not normally be assessed for UK Income Tax. If a Prize is won and shared by a syndicate who entered into a written agreement before the win, then syndicate members should not be liable to pay UK inheritance tax. However, please note that HM Revenue and Customs law and practice may change. The above comments are based on our understanding of HM Revenue and Customs law and practice as of April 2013.

Lottery wins are tax free to start with. Providing you have a properly drawn up syndicate agreement then any winnings are 'owned' by each member as per the agreement

zee1120

Thanks for your help !!!!!!

agrinnall

And all gifts are free of tax in the UK - the only proviso being that (as mentioned in the quote given by !!!!!!) Inheritance Tax may apply if the gift giver dies within 7 years.

Houtman

agrinnall wrote: »

And all gifts are free of tax in the UK

So please remember the rest of us when you`re stinking rich