Do you need to pay tax on lottery winnings?
If you just won the lottery, you might be wondering whether there is any tax to pay on lottery winnings.
The quick answer is no:
- no Capital Gains Tax
- no Income Tax
- and no extra National Insurance.
But that doesn’t mean you’ll never give any of it as tax to HMRC:
- if you put it in the bank, you’ll pay Income Tax on the interest from your savings account
- if you give any to your family or friends, they’ll need to pay Gift Tax (usually if you give over £3,000 – but it depends on the relationship)
- when you pass away, your family will pay Inheritance Tax on whatever is left.