Timbo33

No he doesn't pay tax in any of these circumstances. Betting tax used to either be paid on the winnings or paid up front on the wager in which case the winnings were tax free. Most people paid it up front which meant the Government was laughing 'cos the whole point of betting is the odds are stacked against the gambler - he'll win less than he gambles over a period of time.

Now betting tax has been abolished.....

http://www.inlandrevenue.gov.uk/budget2001/ce1.htm

....you don't have to bother.

I don't know of many people who've managed to earn £100k a year gambling tho.....which is probably hy the Government aren't too bothered. In my experience, your man who's going to pick up £750k will probably blow most of it and be back down the Casino trying to win it back....

ChrisB

That's why you don't see many bookies going bust and the director of a bookies I've done work for had an Aston Martin DB7.

carl

Never really understood this. It makes no difference to the 'punter' whether you pay the tax up front or out of the winnings. Consider a bet at 10:1

Put down £1, pay 10% betting tax. Your stake is 90p. If you win, you get £9
Put down £1 pay no betting tax. You win £10, pay £1 in betting tax and walk away with £9.

Why make it a choice for the punter at all? Of course, it's all a bit academic now the tax has been abolished.

Olly

Question 1: I was half listening to 5 Live on in the car tonight: some businessman was destined to win around £750k on the Reading game, the biggest payout ever on a footie match ever or something. It set me thinking.

Betting tax is abolished, right? But would he pay capital gains if he wins?

Question 2: Case scenario: The same guy decides to give up his nine-to-five, and become a full time professional gambler. He earns £100kPA clear profit from gambling. Does he pay income tax on his winnings?

Question 3: The same guy decides that he quite enjoys his nine-to-five, but bets as a hobby at weekends. He earns £30k gross which he gets taxed on, and another £30k clear profit from gambling. Does he get taxed on his gambling gains?

As you can tell, I ain't a gambler.

[Edited by Olly - 3/12/2003 10:46:04 PM]