{"id":3955,"date":"2022-12-19T13:57:05","date_gmt":"2022-12-19T13:57:05","guid":{"rendered":"https:\/\/www.newbettingsites.co\/?page_id=3955"},"modified":"2023-03-28T14:01:59","modified_gmt":"2023-03-28T14:01:59","slug":"can-you-give-gambling-winnings-away","status":"publish","type":"page","link":"https:\/\/www.newbettingsites.co\/articles\/can-you-give-gambling-winnings-away\/","title":{"rendered":"Can You Give Gambling Winnings Away?"},"content":{"rendered":"
The idea of winning thanks to gambling is a hope that a lot of people have. The idea of winning a large prize on the lottery is something that many would wish happen to them.\u00a0 Many people bet and gamble for enjoyment with the hope they might win.\u00a0 We know the house always wins and, on average over time, most people will lose.\u00a0 Still, that doesn’t mean people don’t win and sometimes win large amounts at one time.<\/p>\n
The problem is, winning money through gambling comes with its own set of problems, up to and including how you go about giving your money away to those that you wish to. Even if you don\u2019t necessarily want to share your winnings with your family or friends, the likelihood is that you might want to make some charitable donations instead. The bad news is that there are laws and rules in place around who you can and can\u2019t give your money to and how much tax will need to be paid on said money in the future.<\/p>\n
The first thing that you might wish to think about is giving some of your winnings to friends or family members. This comes with its own set of complications, depending on how it is that you win your money.<\/p>\n
If you win the lottery, for example, then you can avoid falling foul of the majority of rules that are in place by ensuring that you and your friends and family have a syndicate agreement in place. These can be obtained from the National Lottery easily enough and are documents that declare who is involved in the syndicate and how prizes will be dished out.<\/p>\n
That not only stops any potential disputes in an event where a large sum of money is won, but also means that all of the parties that are included in the agreement avoid paying tax on their share of the winnings. Whilst most people would decide to re-invest small amounts of money won, if someone on your friends and family list is lucky enough to win millions then you can get your share of the money without panicking about how much tax may be due on it.<\/p>\n
In other words, if you\u2019re hoping to give away lottery winnings then make sure you\u2019ve signed a syndicate agreement with the lucky recipients.<\/p>\n
If you haven\u2019t signed such an agreement and still want to give your money away or you\u2019ve won your cash prize through something else, such as betting or bingo, then there are different rules in place<\/a> on what happens next.<\/p>\n The likelihood is that they will have to pay Gift Tax<\/a> on anything that they receive from you. Each year, you are able to give away a total of \u00a33,000 worth of gifts without having to pay tax on it. You can also carry forward any unused tax exemption for a maximum of one year, meaning you could theoretically give away \u00a36,000 if you gave nothing away the year before.<\/p>\n There is also the fact that small gift allowances mean that you can pass on as much as \u00a3250 per person each tax year, provided you haven\u2019t used a different allowance already on that person. Birthday and Christmas gifts that come out of your regular income are exempt from Inheritance Tax<\/a>.<\/p>\n You are also able to give up to \u00a35,000 to a child as a wedding present, or \u00a32,500 to a grandchild or great-grandchild and as much as \u00a31,000 to any other person. Wedding gift allowances can be combined with other allowances, apart from the small gift allowance.<\/p>\n The tax rule applies for seven years, meaning that you don\u2019t owe tax on gifts if you live for seven years after giving them. If you die within seven years, however, then an amount of tax will be owed depending on how long you lived for. Here is how it works out:<\/p>\n