Online Betting

Online Betting

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Per HMRC manual BIM22017, I'm coming to the conclusion that online betting is generally tax free for an individual regardless of the size of the win. Is this always the case per BIM22017 this states the case for an individual backing horses, is this still the case if indivisual is also laying bets as well as backing. Are there any circumstances when the situation becomes more complicated ie taxable.
Lee Gallant

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By frauke
24th Oct 2006 13:36

Betting and tax
No - Betting is always tax free - but then thats because, long term the HMRC believe the vast majority of people will lose overall. If they taxed profits, then they would have to allow losses - which they have no intention of ever allowing.

It is important that some records are kept, as proof that the winnings come from betting (also proof of losses).

Many years ago, someone I knew used to win regulary playing poker - the HMRC at the time said it was not possible (as they wanted to know how the losses were financed) and therefore the income must have come from self-employment. They switched to spreadbetting - and kept the statements to prove the "profit" came from betting.

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