WINNING
Are lottery winnings taxed in the UK?
Why your win itself is tax-free, and the taxes that can apply to what you do with the money afterwards.
The short answer
No. In the UK you don’t pay Income Tax or Capital Gains Tax on lottery winnings. A £10 prize and a £10 million jackpot are both paid in full.
When tax can apply later
The win itself is tax-free, but the normal rules apply to what happens next.
- Interest on savings is taxable above your personal savings allowance.
- Profits from investments such as shares or property can be subject to Capital Gains Tax.
- Rental income from property you buy is taxable.
- Large gifts to family can count towards Inheritance Tax if you die within seven years of making them.
Powerball is the exception to check
The National Lottery says a US Powerball jackpot won from the UK may be subject to applicable taxes in certain scenarios. If you ever win one, the operator will explain what applies before payment.
Get proper advice on a big win
For a large prize, speak to a qualified financial adviser and a tax adviser before moving money around. Planning gifts and investments early can save a lot later. This guide is general information, not tax advice.
Questions people ask
Do I pay tax on a UK lottery win?
No. UK lottery winnings are free of Income Tax and Capital Gains Tax.
Do I pay tax on interest from my winnings?
Yes, interest above your personal savings allowance is taxable in the usual way.
Can I give my winnings away tax-free?
Gifts can count towards Inheritance Tax if you die within seven years. A tax adviser can help you plan larger gifts.
Sources
We check every guide against the operators’ own pages. Rules and prizes can change, so the official operator always has the final word.