# UK Tax Question (hypothetical) **URL:** \ **Category:** Factual Questions\ **Created:** [August 29, 2008, 9:16am UTC](https://boards.straightdope.com/t/uk-tax-question-hypothetical/461658 "2008-08-29T09:16:18Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![Walker\_in\_Eternity](https://avatars.discourse-cdn.com/v4/letter/w/46a35a/32.png) [@Walker\_in\_Eternity](https://boards.straightdope.com/u/Walker_in_Eternity)\ **Post date:** [August 29, 2008, 9:16am UTC](https://boards.straightdope.com/t/uk-tax-question-hypothetical/461658/1 "2008-08-29T09:16:18Z")
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. ---
**Author:** ![kferr](https://avatars.discourse-cdn.com/v4/letter/k/71e660/32.png) [@kferr](https://boards.straightdope.com/u/kferr)\ **Post date:** [August 29, 2008, 10:31am UTC](https://boards.straightdope.com/t/uk-tax-question-hypothetical/461658/2 "2008-08-29T10:31:54Z")
How about setting up a joint account with your friend? You deposit the amount you want to give and your friend has access via a debt card. ---
**Author:** ![Walker\_in\_Eternity](https://avatars.discourse-cdn.com/v4/letter/w/46a35a/32.png) [@Walker\_in\_Eternity](https://boards.straightdope.com/u/Walker_in_Eternity)\ **Post date:** [August 29, 2008, 10:52am UTC](https://boards.straightdope.com/t/uk-tax-question-hypothetical/461658/3 "2008-08-29T10:52:02Z")
That seems like one solution that would work. Thanks. ---
**Author:** ![Ximenean](https://avatars.discourse-cdn.com/v4/letter/x/aca169/32.png) [@Ximenean](https://boards.straightdope.com/u/Ximenean)\ **Post date:** [August 29, 2008, 11:08am UTC](https://boards.straightdope.com/t/uk-tax-question-hypothetical/461658/4 "2008-08-29T11:08:44Z")
Why would you pay any tax? If you unfortunately die within the next seven years then they may have to pay some inheritance tax, I suppose. ---
**Author:** ![Chez\_Guevara](https://avatars.discourse-cdn.com/v4/letter/c/aeb1de/32.png) [@Chez\_Guevara](https://boards.straightdope.com/u/Chez_Guevara)\ **Post date:** [August 29, 2008, 12:13pm UTC](https://boards.straightdope.com/t/uk-tax-question-hypothetical/461658/5 "2008-08-29T12:13:37Z")
[QUOTE=Walker in Eternity] 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 to them? [/QUOTE] 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: > [@](#): > > ‘To avoid any doubt, it makes good sense to have a simple written agreement signed and dated by all the members of the syndicate,’ he says. > > 'It is also a good idea to set out the rules of the syndicate. For example, the names of the group members, the appointed manager’s name and how the numbers are selected so that disputes after a big win can be avoided. > > ‘Copies should be given to each member and the original kept in a safe place, as the Inland Revenue may require to see it as evidence of the group agreement,’ he adds. [Link](http://www.thisismoney.co.uk/tax-advice/article.html?in_article_id=355489&in_page_id=11). [Another link](http://www.uklaw24.co.uk/lottery-syndicates.htm) 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. ---
**Author:** ![Quartz](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/quartz/32/267_2.png) [@Quartz](https://boards.straightdope.com/u/Quartz)\ **Post date:** [August 29, 2008, 1:23pm UTC](https://boards.straightdope.com/t/uk-tax-question-hypothetical/461658/6 "2008-08-29T13:23:05Z")
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.