That's a good point - would it be a single asset or net ?
Silly question but what about lottery winners - its supposed to be tax free - asking because I plan on winning it tonight.
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Silly question but what about lottery winners - its supposed to be tax free - asking because I plan on winning it tonight.
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Net assets. And yes your £20m cash will cost you 200k in tax - per year. If that is how they structure it.
You won’t pay tax on the winnings BUT there after you’ll be paying tax on any gains
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I've always struggled with the idea that these sort of things are tax free. There is no reason for them to be exempt and say "winnings" from stock market investments are taxed.
you invested a £1 and you gain £5000. seems reasonable that it should be a capital gain at least.
you invested a £1 and you gain £5000. seems reasonable that it should be a capital gain at least.
The lottery is already "taxed" at about 40% up front.
Eh - so the lotto ticket only costs £1.20 and the rest is tax - didn’t realise that.
Or the pound you buy it with likely "cost" you 40% tax to earn?
The gambling industry makes megabucks for HMRC and all thanks to Blair who set the modern aspect of gambling in motion
12% goes in duty directly to the government, 28% goes to a government quango to support good causes. Then there are running costs. Only 53% goes to the winner.
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sounds like a good deal for a top rate tax payer.
the fact remains you made a gain, which hasn't been subject to tax.
It seems so. But that is same for all gambling. The stakes are taxed, rather than the winnings. And in aggregate it works out the same. Do you have an objection to this way of doing it. People often say it is a tax on the poor.
That’s not totally accurate by a long way
Looks like Labour are looking for some experienced economists to help Reeves
It's near enough. Out of every £2 ticket, 80p goes to the government. They get 24p in duty directly, and then 56p goes to the government quango.
The government quango then gives the money to “good causes”