# Are gambling winnings taxed in the UK? > Gambling and money · Last updated 25 September 2026 Canonical HTML: https://moneyguide.org.uk/gambling-and-money/are-gambling-winnings-taxed-uk/ Markdown mirror: https://moneyguide.org.uk/gambling-and-money/are-gambling-winnings-taxed-uk.md ## Quick answer No. Winnings from betting and lotteries, including the National Lottery, and Premium Bond prizes aren't taxed in the UK: they're not income and not chargeable gains. Tax can arise later, on interest or other income the money earns, and a large gift of winnings can count for Inheritance Tax if the giver dies within 7 years. ## Who should skip this Skip this if you run a gambling business such as a bookmaker: HMRC treats an organised activity to make profits from the gambling public as a trade, so its profits are taxable. If you want to know how Premium Bonds work as savings, see our [Premium Bonds guide](/savings/premium-bonds-explained/). A big win doesn't come with a tax bill, but what you do with the money can. This guide sets out what the law and HMRC say about winnings, when the income they produce is taxed, the narrow cases where gambling counts as a trade, how gifts and syndicate wins work for Inheritance Tax, and what happens with winnings from abroad. ## Key facts - Betting, lottery and Premium Bond winnings aren't subject to Income Tax or Capital Gains Tax - You can't get tax relief for gambling losses - Interest on winnings is taxable above your allowances; the Personal Savings Allowance is £1,000 for basic-rate and £500 for higher-rate taxpayers - Savings income tax rates rise to 22%, 42% and 47% from 6 April 2027 - Gifts of winnings are ordinary gifts for Inheritance Tax: the annual exemption is £3,000 - HMRC says syndicate winnings shared under an agreement made before the win aren't gifts ## Are betting, lottery and Premium Bond wins taxable? No. GOV.UK lists Premium Bond and National Lottery wins among the things you don't pay Income Tax on, and NS&I says Premium Bond prizes are free of UK Income Tax and Capital Gains Tax. Section 51 of the Taxation of Chargeable Gains Act 1992 says winnings from betting, including pool betting, and from lotteries or games with prizes are not chargeable gains. HMRC's Business Income Manual explains why betting isn't taxed as income: betting and gambling as such are not trading. A person placing bets isn't taxed on their profits and gets no relief for their losses, and that normally includes spread bets. Because the win itself isn't taxable income or a chargeable gain, there's no tax to pay on it. These rules apply across England, Wales, Scotland and Northern Ireland. What can be taxed is what the money produces afterwards. ## Is the interest on your winnings taxed? Yes. Once winnings are in a bank or building society account, the interest is savings income, taxed in the normal way above your allowances. For 2026 to 2027, the Personal Savings Allowance lets basic-rate taxpayers earn £1,000 of interest tax-free and higher-rate taxpayers £500; additional-rate taxpayers get none. If your other income is under £17,570, the starting rate for savings can also make up to £5,000 of interest tax-free, reduced by £1 for every £1 of other income above your Personal Allowance. See our guide to the [Personal Savings Allowance](/savings/personal-savings-allowance/). Interest above your allowances is taxed at 20%, 40% or 45% in 2026 to 2027. HMRC's published changes raise the savings rates to 22%, 42% and 47% from 6 April 2027. Scottish taxpayers pay the same UK rates on savings interest. Money in an ISA is sheltered from tax, and you can pay in up to £20,000 in 2026 to 2027. If your savings interest is more than £10,000 in a tax year, you must report it through Self Assessment. Below that, your bank tells HMRC and any tax is usually collected through your tax code. If you invest winnings in shares or property, dividends, rent and gains on selling the investments are taxed under the normal rules, even though the original win wasn't. ## Worked example: tax on interest from a £60,000 win This hypothetical example uses 2026 to 2027 allowances and a made-up interest rate of 4%; real rates vary. Sam earns a £35,000 salary and puts a £60,000 lottery win in a savings account. The win itself is tax-free. A year's interest at 4% is £2,400 (£60,000 × 4%). Sam's salary is above £17,570, so the starting rate for savings doesn't apply. Salary plus interest is £37,400, so Sam stays a basic-rate taxpayer with a £1,000 Personal Savings Allowance. Tax is due on £1,400 (£2,400 − £1,000) at 20%, which is £280. At the 22% rate from 6 April 2027, the same interest would cost £308. If Sam put £20,000 in a cash ISA and £40,000 in the savings account, the taxable interest would be £1,600 (£40,000 × 4%) less the £1,000 allowance, which is £600. Tax at 20% would be £120. *Hypothetical tax on a year's interest from a £60,000 win (basic-rate taxpayer, 4% interest)* | | All £60,000 in a savings account | £20,000 in a cash ISA, £40,000 in savings | | --- | --- | --- | | Interest earned | £2,400 | £2,400 (£800 of it in the ISA, tax-free) | | Taxable interest after the £1,000 allowance | £1,400 | £600 | | Tax at 20% (2026 to 2027) | £280 | £120 | | Tax at 22% (from 6 April 2027) | £308 | £132 | ## When could gambling count as a trade? Very rarely for someone who simply bets. HMRC's manual, relying on the 1925 case Graham v Green, says having a system, studying form or even earning a living from betting doesn't turn it into a trade. So a so-called professional gambler is normally not taxed on winnings and can't deduct losses. Gambling is trading when it's an organised activity to make profits out of the gambling public, as a bookmaker does. HMRC also gives examples where winnings are part of an existing business: a club owner who regularly won at cards against members on the club's premises was taxed on those winnings (Burdge v Pyne, 1968), but a golf professional's private bets on games he played were not (Down v Compston, 1937). Appearance money, such as fees for appearing on television, is payment for a service and can be taxable. If you think your betting might be part of a business, ask HMRC or a tax adviser, because the answer depends on the facts. ## Do gifts of winnings count for Inheritance Tax? The win doesn't, but giving the money away can. A gift of winnings is treated like any other gift. Some gifts are exempt straight away: gifts to a spouse or civil partner who lives in the UK permanently, gifts to charities and political parties, up to £3,000 a tax year under the annual exemption (plus any unused amount from the previous year), small gifts of up to £250 a person, and wedding or civil partnership gifts of up to £5,000 to a child. Other gifts count towards your £325,000 tax-free threshold if you die within 7 years. Tax is due on gifts above the threshold, reduced by taper relief for gifts made 3 to 7 years before death. For example, if you gave your daughter £40,000 of a win in 2026 to 2027 and hadn't used your 2025 to 2026 annual exemption, £6,000 would be exempt and £34,000 would count towards the threshold if you died within 7 years. Keep a record of what you gave, to whom and when. See our [7-year rule guide](/family-life/inheritance-tax-7-year-rule/) and [how much you can gift tax-free](/answers/how-much-can-i-gift-tax-free-uk/). Syndicates are different. HMRC's Statement of Practice E14 says no Inheritance Tax arises when football pool, National Lottery or similar syndicate winnings are paid out under an agreement made before the win, because each member receives what already belongs to them. HMRC suggests members may find it wise to record the agreement in a written, signed and dated statement. If the terms change after a win, or money goes to people outside the syndicate, Inheritance Tax may apply. The same principles apply to Premium Bond syndicates. ## What about winnings from abroad? UK tax law doesn't tax the win itself, wherever the bet or lottery took place: section 51 of the 1992 Act isn't limited to UK bets, and HMRC's view that betting isn't trading applies in the same way. Another country may tax or withhold tax from winnings under its own rules. Foreign Tax Credit Relief reduces UK tax on income taxed in two countries, and GOV.UK says you get back less if the income would have been taxed at a lower rate in the UK. As the UK doesn't tax the win, there's generally no UK tax for foreign tax to be set against. Some double taxation agreements let you reclaim tax from the other country instead, so check with that country's tax authority or a tax adviser. Interest earned abroad on winnings is taxed differently. If you're UK resident, you normally pay UK tax on foreign income such as savings interest, and GOV.UK treats the Channel Islands and the Isle of Man as foreign. See our guide to [tax on foreign savings](/benefits-tax/foreign-savings-tax-uk/). ## Can winnings affect benefits? Yes, if you get means-tested benefits. For Universal Credit, money and savings over £6,000 reduce your payment by £4.35 for every £250 (or part of £250) between £6,000 and £16,000, and you can't usually get Universal Credit with more than £16,000. A win counts as money you have, so report it as a change of circumstances. See our [Universal Credit guide](/benefits-tax/universal-credit-explained/). ## Frequently asked questions ### Do I need to tell HMRC about a lottery win? The win itself isn't taxable income or a chargeable gain, so there's no tax to pay on it. What you may need to report is income it produces later: if your savings interest is more than £10,000 in a tax year, you must report it through Self Assessment. ### Are Premium Bond prizes taxable? No. NS&I says Premium Bond prizes are free of UK Income Tax and Capital Gains Tax, and GOV.UK lists Premium Bond wins among income you don't pay tax on. ### Can I claim tax relief for gambling losses? No. HMRC's manual says a person placing bets isn't taxed on their profits and doesn't get relief for their losses, and that normally applies to spread bets too. ### Are professional poker players taxed on their winnings? HMRC says being skilful, having a system or earning a living from gambling doesn't by itself make it a trade, so winnings are normally not taxed. Payments such as appearance fees for television are different, and each case depends on its facts. ### Is sharing a syndicate win a gift? Not if it's paid out under an agreement made before the win. HMRC suggests keeping a written, signed and dated record of the syndicate's terms. Changing the shares after a win, or paying people outside the syndicate, may count as a gift for Inheritance Tax. ## Primary source https://www.gov.uk/income-tax, https://www.legislation.gov.uk/ukpga/1992/12/section/51, https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim22015, https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim22017, https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim22018, https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim22019, https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim22020, https://www.nsandi.com/products/premium-bonds, https://www.gov.uk/apply-tax-free-interest-on-savings, https://www.gov.uk/income-tax-rates, https://www.gov.uk/government/publications/income-tax-changes-to-tax-rates-for-property-savings-and-dividend-income, https://www.gov.uk/scottish-income-tax, https://www.gov.uk/individual-savings-accounts, https://www.gov.uk/inheritance-tax/gifts, https://www.gov.uk/government/publications/statement-of-practice-e14/statement-of-practice-e14, https://www.gov.uk/tax-foreign-income/taxed-twice, https://www.gov.uk/tax-foreign-income, https://www.gov.uk/universal-credit/what-youll-get ## Related - [Premium Bonds explained](https://moneyguide.org.uk/savings/premium-bonds-explained/) - [The Personal Savings Allowance](https://moneyguide.org.uk/savings/personal-savings-allowance/) - [Inheritance Tax explained](https://moneyguide.org.uk/benefits-tax/inheritance-tax-explained/) - [The Inheritance Tax 7-year rule](https://moneyguide.org.uk/family-life/inheritance-tax-7-year-rule/) - [Tax on foreign savings](https://moneyguide.org.uk/benefits-tax/foreign-savings-tax-uk/) - [Charity lotteries and raffles](https://moneyguide.org.uk/gambling-and-money/charity-lotteries-and-raffles/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.