If you won 1 million on the lottery, what would you spend it on?

[Moscow Mule]

Wrong. You are not tax on all of it - the win is tax free. Say if you build business you are taxed all the way - and when you finally get profits you are still taxed. Same should be for gambling - treat it as income.

That's fine as long as you can off-set your initial stake in a losing bet against other income.

[AtW]

That's fine as long as you can off-set your initial stake in a losing bet against other income.

If you buy something and it depreciates in value (goes out of fashion for example), can you claim tax back? No. Same should go for gambling.

Perhaps there should be annual allowance of £1000 of free gambling wins, but anyone winning any serious amount of money (£10k upwards) should be paying income tax.

Frankly, if inheritance (already taxed before) is taxed like heck, then why should gambling wins be tax free?

The only explanation for this is that Lottery in the UK is one big tax already so Govt is pretending it is not taxing it, where as the whole thing is a tax in itself.

[SueEllen]

Wrong. You are not tax on all of it - the win is tax free. Say if you build business you are taxed all the way - and when you finally get profits you are still taxed. Same should be for gambling - treat it as income.

You are taxed on the bet.

If you beat the odds which are stacked against you and win, the prize money is tax free.

You pay tax on all the luxury goods you buy with the prize money.

You pay tax on the income earned on the prize money.

Basically the taxman wins because people need to be fooled into making a bet in the first place.

[Moscow Mule]

If you buy something and it depreciates in value (goes out of fashion for example), can you claim tax back? No. Same should go for gambling.

Yes you can - CGT work just like this.

[AtW]

You are taxed on the bet.

You are taxed when you get your income, then you buy a house and you get taxed again (stamp duty), then you die and your inheritance is likely to be taxed again. Why gambling should be different? Frankly, by definition a big win in gambling means you put small resources into it, so it is only fair to tax it if you tax things like inheritance.

Basically the taxman wins because people need to be fooled into making a bet in the first place.

It's more complicated than this in the UK - basically Lottery money go into arts and other things that the Govt should have paid with general taxation. But they con people into being able to win something, while huge chunk of money people pay goes back to fund things that would otherwise have to be funded by the taxpayer. Brilliant idea no doubt top thiefs (CoE) think of it.

I am all for small taxes, however, if you have situation where inheritance is taxed, then big lottery wins should be taxed as well.

[AtW]

Yes you can - CGT work just like this.

For companies, and only if they are not under IR35, right?

What about people on the street - they buy a plasma TV pay tax, then next year the value of the TV goes 50% down, should people get tax refund?

[Moscow Mule]

For companies, and only if they are not under IR35, right?

What about people on the street - they buy a plasma TV pay tax, then next year the value of the TV goes 50% down, should people get tax refund?

No, CGT rules apply to individuals.

And in your example, if the value of the TV goes up - should people pay more tax? When they have already paid tax on the money used to purchase the television?

It's a complicated issue Alexei, perhaps you shouldn't get involved.

[SueEllen]

You are taxed when you get your income, then you buy a house and you get taxed again (stamp duty), then you die and your inheritance is likely to be taxed again. Why gambling should be different? Frankly, by definition a big win in gambling means you put small resources into it, so it is only fair to tax it if you tax things like inheritance.

It's big con that's why.

The prize money isn't taxed otherwise it would put people of gambling, which means the government wouldn't get the tax on the bets.

Have a look a premium bonds for another government run con. http://www.nsandi.com/products/pb/index.jsp

[AtW]

No, CGT rules apply to individuals.

For shares and stuff like that - not for end user things you buy.

Gambling is not an investment so it should not qualify for tax refund in case of losses.

It's a complicated issue Alexei, perhaps you shouldn't get involved.

The issue is simple - almost everything is taxed very hard in the UK, however huge gambling wins are not: this is wrong because this lack of taxation does not encourage anything good, like say investment into new drugs that can cure AIDS etc.

Therefore gambling wins should be taxed at the same rate as income tax is - perhaps with small annual tax free allowance.

[dude69]

If that day ever comes to pass I'd be happy to ease your conscience and take the load off, sorry weight off your mind.

1 mill, wazzat get you these days, a nicish house in a decent area in London. Whoopee doo.

Try, 'a shoddy flat'.

Or if you can borrow an extra £100k you could stretch to this (£1.1m):

http://www.rightmove.co.uk/viewdetai...a_n=1&tr_t=buy

Yes, a poorly-arranged 3-bed terrace in North London with a horrid pathetic postage stamp of a garden, tiny bedrooms, no dining room

As you say, whoop-de-doo.

A decent house, say 4,500 square feet in home counties is AT LEAST £1.5m

This is yer basic lottery winner house:

http://www.rightmove.co.uk/viewdetai...a_n=1&tr_t=buy

£1m is a modest detached, hardly millionaire level.

£3m is bare bones for house and some spending, but you wouldn't be rich at all.