Personal Finance

Hypothetical lottery jackpot win

Last night was the euromillions draw and tonight is the national lottery and every week I hope to win big time - like all other players.

There is only me (self + 2 cats) and my brother (married with two kiddies) left of our family. I have no problem giving him some of my big win - maybe 20%-25% of my total win.

Would there be tax payable on the money that I give him?

We don't have a written agreement because (a) we really don't think that we will ever win anything and (b) the percentage that I give him is dependent on how much I win - I need to buy a house and secure an income from savings etc.

I must add that the tight fisted git doesn't buy lottery tickets on a regular basis.

I know that this is hypothetical but it doesn't hurt to be prepared.

Thanks

Susan

wolf63 Sat 31/05/08 05:57

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Postdog
Sat 31/05/08
10:36

I've done this many times. When we had that really big euro draw, I was gonna give all my best mates a few million each, so they could have a good life too. Didn't win tho...

Anyway the answer to your question is NO tax is payable, unless you die within 7 years of giving it, then it is subject to tax. Not sure what tax, but they have to pay.

Tom Braider
Sat 31/05/08
13:28

Postdog is wrong to say "they" have to pay. if you die within 7 years of the date of the gift, the amount given is treated as part of your estate and is subject to inheritance tax. I wouldn't worry about it, though - I'm willing to bet that you're not going to win the jackpot!

helpmetoo
Wed 11/06/08
13:02

do the same as most big winers and hastily draw up a backdated syndicate form showing the share division

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