Is a gift won in a company raffle taxable?

annieg21

Hopefully someone can help me on this as I have Googled extensively and gone through the HMRC website and I can't find a clear answer.

We have a company Christmas raffle coming up whereby the prizes have all been donated by external sources which are not directly linked to the organisation (they're not suppliers, they are private contacts that the employees have asked for donations such as family members). All the prizes are small value e.g. £30 meal at a local pub and all the proceeds raised from the ticket sales will go to charity.

i've been asked by our CFO whether the prizes are a benefit in kind which I don't think they are as they are small value donations. However, one prize is a day's annual leave which the company is gifting. Can anyone confirm if this is a benefit in kind? I would assume that as it is annual leave the company is at liberty to 'gift' additional leave to employees within their own internal annual leave policy, and I did find a reference within HMRC along the lines that this type of benefit is not normally taxable.

Can anyone confirm?

Thanks so much!

Linton

I would say not..


People taking part in the raffle are buying their own raffle tickets. Gambling winnings are not taxable (unless you are a professional gambler I believe). Apart from the 1 days holiday the raffle has no connection with the company. Holidays are not taxable - you just pay tax on your earnings, the amount of paid holiday you get is up to the employer.


However if you want a definitive answer you will need to pay a lawyer or wait for the judge to make a ruling if HMRC takes the issue to court!

TheCyclingProgrammer

I’d say covered by the exemption for trivial gifts if the value was no more than £50 per gift. No rulings necessary.

https://www.gov.uk/expenses-and-benefits-trivial-benefits