Set for Life Lottery

mapevilc

I have looked at gov.uk and MSE site but have been unable to find an answer to my question and would appreciate your help.

if I am fortunate enough to win the lottery game "set for life" which pays the top prize winner £10,000 per month for thirty years, would I be liable to pay income tax on the winnings? A friend has stated that the first payment would be tax-free but all further payments would be liable to pay income tax on. My take on such a win is that all payments are part of a lottery win, therefore, no tax liability.
Please help as I won't want to pay tax if I don't have to.
Thank you in advance

AlwaysLearnin

From the lottery site:

https://www.national-lottery.co.uk/games/set-for-life/about-set-for-life#Is-the-top-prize-tax-free

"Is the top prize tax-free?

Yes – in most cases, the top prize is paid tax-free as it is dealt with at source. In all cases, based on current tax rules and rates, we have designed the game so that all top prize winners – regardless of their tax bracket – receive a minimum payment of £10,000 each month after tax.

All top prize winners are offered a meeting with a Financial Advisor during which any questions relating to tax can be discussed."

The Financial Advisor will presumably be able to provide more information.

Congrats

00ec25

total non question

if you genuinely won then the National Lottery financial advisers would explain the position to you. Wait till you win.

mjm3346

mapevilc wrote: »

I have looked at gov.uk and MSE site but have been unable to find an answer to my question and would appreciate your help.

if I am fortunate enough to win the lottery game "set for life" which pays the top prize winner £10,000 per month for thirty years, would I be liable to pay income tax on the winnings? A friend has stated that the first payment would be tax-free but all further payments would be liable to pay income tax on. My take on such a win is that all payments are part of a lottery win, therefore, no tax liability.
Please help as I won't want to pay tax if I don't have to.
Thank you in advance

All their games are poor value but this is the only one where you need to live at least 30 years after winning to actually get the full prize as once you die payments stop.

(Your friend is correct, lottery wins paid out over time are normally subject to tax but this is designed so you get the £10 k after tax is paid)

londoninvestor

mjm3346 wrote: »

All their games are poor value but this is the only one where you need to live at least 30 years after winning to actually get the full prize as once you die payments stop.

Your estate gets a residual sum:
https://www.national-lottery.co.uk/games/set-for-life/about-set-for-life#What-happens-to-the-top-prize-money-if-a-winner-dies

Cook_County

The prize would be taxable in the States if Meghan or Archie win because US citizens are subject to US tax on worldwide income. There would be no UK tax.