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Charge a 35% tax on lottery, game show winnings and Premium Bond winnings over £1,000, with the tax deducted at the source.
Change to the online gambling taxes, whilst ensuring the tax does not flow abroad.
The proposal is to charge a 35% tax on lottery and Premium Bond winnings over £1,000, with the tax deducted at the source. The tax deduction will be calculated assuming no other income. This rule will apply to all winners, including those who are not UK taxpayers.
To avoid reducing payments to good causes, advertise the winnings as the amount paid after tax. The remaining sum will still be substantial enough to encourage ticket sales.
Some countries have specific, lower tax rates for lottery winnings. For example, Spain applies a flat 20% tax on lottery prizes above a certain amount. Other forms of gambling in the UK, such as horse racing, pay a lower fee on the stake, which means winnings are tax-free. This model could also be used to generate the same amount of taxation.
Game Shows are a popular form of entertainment in the UK, with many participants winning substantial cash prizes. However, these winnings are currently not subject to income tax, which creates an unfair advantage for those who win large sums.
Game Show winnings over £1,000 should also be subject to income tax, with tax deducted at source.
Online Gambling is a significant source of revenue for the UK, with Billions wagered annually. However, the current taxation framework does not adequately capture the full potential of this sector.