How much tax will be paid if I give my family £500,000 of my UK Lottery winnings. Is it tax free if its a gift

Answer 1

look up the gift tax, but you might well find that it's tax-free provided you survive seven years beyond the date of the gift, in which case the tax is pro-rated. This is to stop people "gifting" their estates on their death-beds.

Answer 2

Assuming you are UK domiciled and resident, you are subject to inheritance tax only if you predecease your gift by 7 years. i.e., if you live another 7 years, it's knocked off your IHT.

Ways to avoid this:

1) If you haven't collected your winnings yet, you may be able to split your winnings upfront. This presumes you can (after the fact) split the ownership of the ticket prior to collecting the winnings. Speak of your problem (hypothetically, of course) with a solicitor who can draft the ownership documents for the ticket

2) This solution is perhaps cheaper if you're young & healthy; buy term IHT life insurance for the requisite 7 years. Life insurance companies in the UK specialize in this gift protection product; you should be able to shop around and get quite a cheap one. Use an IFA insurance broker to buy this product - do not buy from a provider who is only licensed to sell one company's products.

If you are not UK domiciled, you need specialist advice from both your country of domicile and the UK.

I notice many people answered your query without stating their assumptions. The advice on this forum will not protect you from an HMRC investigation into your IHT affairs, nor for that matter the IRS or any other taxing authority. You should seek expert independent (i.e., paid for) advice to protect yourself. You can sue an accountant or lawyer who gives you the wrong answer; you can't sue Yahoo.

Answer 3

In the United States we have to pay thirty percent capital gains on all money's won or earned in private business. I don't know how much you can give someone tax free but its not anything over ten thousand American dollars, probably not even close, probably more like three thousand dollars. Its not a kind system as far as winnings go. A good chunk will go to taxes though so you can count on that.

Answer 4

sure they are tax unfastened because of the fact they have been already taxed formerly the prize volume replaced into dispensed. Take nationwide Lottery working example, they might generate 30 million pounds on a Saturday by using fee ticket revenues. They allocate 12 million to their charities, 10 million pounds is going on tax and then the relax 8 million pounds is the prize money and so the winner gets this and does not pay tax because it has already been deducted. desire it is clever and the numbers I even have used are basically randomly chosen, they do no longer seem to be consistent with quite probabilities of ways it is dispensed.

Answer 5

There is a huge Gift Tax too.

Answer 6

You don't pay tax on a gift.... ( we did the same in '98 ,,,, ).... Just make sure that if it is put in a Bank , all amounts over £10,000 are reported to the Authorities ( to check its not for illegal means )
so keep records of the transaction ...
Hope this helps. ( we won £1,2M in November 97 )

Answer 7

are you sure that you really won this lottery??
did you bet on a lottery??
if you'r not bet on a lottery, i think that it is a fraud since i was experienced it before, and there will be taxes you must paid which are just their reasons to take your money

Answer 8

Why bother dump all your family and join mine, it's cheaper. I'll pay all the tax myself. But seriously make sure they don't end up losing any benefits, unless you can afford to see them through life yourself.

Answer 9

www.qck.com/tax-advice.html

Answer 10

please get the advice of tax regulations of your country