The question “Are my winnings subjected to taxes?” confuses many new punters who have just begun gambling and don’t quite know the ropes yet. We at TopBettingSite.co.uk are positive that you won’t have to pay any taxes when gambling, but will still try and answer your question in depth like we always do.
It’s worth mentioning that the things said in this article apply only to British punters. If you are from another country then check out our section on “currency options”.
Are my winnings subjected to taxes?
Fortunately for you, the money you win from gambling isn’t subjected to taxes, so you can spend them however you want. The main reason is that if the government taxed the winning wagers, they also would have to offer a tax relief for the losing ones, and seeing that most bets don’t win, this won’t be a profitable option.
The other reason why there is no tax on gambling winnings is that it would be very difficult to make people pay it and the costs of chasing people who won small amounts of money would exceed the profits.
Is it any different for professional gamblers?
Many people think that professional punters have to pay taxes, but they are wrong. The government can’t differentiate between people who gamble occasionally and those who do it every day. That’s the situation for now, but it can change in the future, so watch this page for updates.
If you hear a professional gambler complaining about taxes, don’t jump to any conclusions. They probably are paying their taxes in a different country than the UK or these could be taxes for promotional or TV appearances which is common for poker players. You can be confident that you won’t have to pay gambling taxes in the UK regardless of how much you actually win.
If this still doesn’t convince you that professional gamblers don’t have to pay taxes, we suggest consulting with your accountant.
Who is getting taxed?
While the punter doesn’t have to pay anything in the form of taxes, the government still manages to make a profit by taxing the betting operators. You may think that this is great for the players, but that’s not the case because the bookies find a way to recover their losses by giving you slightly smaller odds.
This means that even if your winnings don’t get directly taxed, you can still feel the effects of UK’s taxation system when gambling.