Assuming I won the lottery (say~£15M+ on a rollover or something) and wanted to give some to a friend , how could I without having to pay large amounts of tax on the money I give t them?
Could I buy a property with land and vehicles that they want myself and then sell it to them for a nominal sum, say £1?
Before I get any begging emails, no I haven’t won, this is a purely hypothetical question. I don’t even do the lottery.
In cases where more than one person is to benefit from a lottery win, such as office syndicates, family members, or a poster and his friend, it’s far better to get all concerned parties to sign an agreement prior to buying a ticket.
In the words of Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accounts:
Another link gives further advice on setting up a lottery syndicate. It seems that problems other than tax liability may arise if the agreement is not nailed down effectively.
The U.K. lottery is tax-paid. Payments by the winner to third parties are considered gifts. Neither party has to pay any further tax directly. If you die within 7 years, the gift, if over £3000 does become subject to Inheritance Tax at a reducing rate.