UK Tax status of poker winnings

[ach123]

Is it true that gambling winnings (such as playing poker) are free of tax in the UK and don't have to be declared?

[AncientPC]

I don't live in the UK but I believe so from what I hear from the other UK folk on these boards.

[daveymck]

You are correct all tax free.

Tax is only paid in betting shops where you have the choice of adding the tax to the bet or paying it on any winnings. Online betting shops have moved outside of the UK to avoid this.

[stigmata]

I have heard this stated many times, but does anyone have any official source for this information (e.g. from IRS etc)?

It confuses me how you have to pay in a betting shop, but your winnings are tax-free from an off shore company.

What happens if I am professional gambler? Should I declare my status to the Inland Revenue? SHould I pay National Insurance?

Just interested really - would like to hear from any UK professionals or people with law knowledge.

[daveymck]

Have a read of this

Poker and the Taxman (http://www.thehendonmob.com/Articles/poker%20and%20the%20taxman.htm)

Has some case law etc to confirm the basis of professional gambler.

Personally I would pay NI, I think you can buy a stamp even if not paying via PAYE.

The reason you pay tax in the high street (although this may have been abolished dont go into such places) compared to online is that the shops are in the uk so under UK tax law the online servers are all offshore.

Currently it is illegal to provide "wire" gambling services in the UK which is another reason they are all based abroad. There is legislation going through parliment that will change this and licensed online gaming will become legal but have to see the tax status to see if it brings them back from Gibralter.

[daveymck]

And gere is a link to the latest gambling bill info site with latest news of progress etc.

Government Gambling Page (http://www.culture.gov.uk/gambling_and_racing/gambling_bill.htm#1)

[Orignac]

I spoke to the Inland Revenue regarding this a while back and was advised that all poker winnings are exempt from taxation.

[beating nero]

[ QUOTE ]
Tax is only paid in betting shops where you have the choice of adding the tax to the bet or paying it on any winnings. Online betting shops have moved outside of the UK to avoid this.

[/ QUOTE ]

For a year or 2 betting in the UK is tax free either on or off course(Betting shops).

It has always been tax free on course but a 10% was payable off course with the option of eitherpaying 10% of the bet amount in advance, or paying 10% of any winnings.

Any winnings from poker online or live is totally free of all UK taxes. (About the only thing that is in the UK)

I think the UK makes up for this with an 80% tax on petrol, fags and booze /images/graemlins/mad.gif /images/graemlins/mad.gif