In the UK prizes on game shows, gambling and the lottery are tax free.
There are rules around what constitutes gaming and prizes though – it has to be open to entry of more than one Person – there has to be a legitimate chance of you not winning – winning has to be a game of skill or chance.
But if you win the lottery it’s all yours.
Because that’d be a huge tax loophole if it weren’t taxed. My company could pay me minimum wage, and then give me “prizes” instead of a salary. I’d love it because I wouldn’t need to pay income tax on it. They’d love it because they could afford to pay me less (since I’m getting less taken away from the government). The government wouldn’t get any money.
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