Great news UK punters, all gambling winnings are absolutely exempt from government taxes! In the rest of the world, they are taxed up to 25% but not in Queen Elisabeth’s land, no matter if the amount won ranges from £10 to £10,000.00 and which product – poker, horse racing, bingo, sportsbook – you place your bet or wager on, you won’t pay any taxes on winnings at all, especially on this site for betting on sports in UK. Here is a list of recommendations to follow when you hit the jackpot.
Read the Terms and Conditions Very Carefully
Depending on the amount of money won, UK registered online gambling websites might pay the winnings in one go or implement monthly direct debit. Also, if you are resident in the UK but are domiciled abroad, any winnings from a British licenced operator might have to be declared in your self-assessment tax return and abide by the tax laws of the country you currently live in. On the contrary, if you are a British citizen or taxpayer but you are lucky enough to have won the lottery while you were traveling outside the country, you won’t be asked to pay any taxes.
Who is Liable to Pay the Taxes on Winnings?
Both offline and online casinos, bookmakers and gambling operators in general are subject to UK government taxes. This way, punters are happy and so is the economy and prosperity of the country. The 2005 Gambling Act was revised in 2014 and sanctioned that UK licenced betting firms, even those whose operations are based offshore, incur a 15% government tax on their gross profit.
Are Gambling Winnings Taxed for Professional Punters?
Especially with the continued success of online betting companies, it is not surprising that many people see gambling, mainly sports bettors and poker players as a proper job and often as the main household income. Because gambling, even if done professionally, is not considered a trade or a trading activity per se, winnings are not subject to government taxes either. On the other hand, professional gamblers who are paid to promote, make an appearance or play in a specific tournament will have to pay taxes on the fees received but not on the prizes they can potentially win from the competition.
The Exceptions to the Rule
In case of a big jackpot or lottery prize winnings, we suggest you seek advice from your accountant or financial advisor to be on the safe side as there might be some taxes labelled as “other” that might affect your winning money, like, for example, taxes on inheritance, household income and property.
