Tel: 01736 795753
This email address is being protected from spambots. You need JavaScript enabled to view it.

Is professional gambling a trade?

Source: HM Revenue & Customs | | 29/05/2018

A thought-provoking question that has been asked by one of our readers is whether professional gambling is a trade or not. The answer to this question might surprise you. According to HMRC and reinforced by a number of court cases the answer is that gambling is not a taxable trade. This answer holds even for a professional gambler who spends a significant amount of time building up their expertise and honing their skills.

This view is confirmed in HMRC's Business Income Manual where HMRC says that 'the fact that a taxpayer has a system by which they place their bets, or that they are sufficiently successful to earn a living by gambling does not make their activities a trade'.

The only caveat to HMRC’s guidance is the possibility that some 'professional gamblers' do carry on a trade, for example, where they receive appearance money for appearing on television programmes. In fact, a professional gambler has nothing to report to HMRC (unless he has other sources of income). However, we would still recommend keeping records of winnings (and losses) should you ever become the subject of an HMRC enquiry and be required to prove your source of income.

Planning note

This issue can also raise difficulties for a non-taxpayer. For example, it would be very difficult to obtain a mortgage or other type of loan from a mainstream financial lender. Gambling winnings in the UK are also tax-free regardless of whether it's your main source of income or a simple hobby. Interestingly, the UK's view is not common across the world and many other jurisdictions tax gambling winnings.



Search Archive


Latest News

New “Spotlight” explains impact on pensions of maternity leave
17/06/2018 - More...
The Pensions Advisory Service (TPAS) has published a “Maternity Leave Spotlight” outlining the

Dormant assets scheme to be expanded
12/06/2018 - More...
The Government has announced that the dormant asset schemes is to be expanded to include to a wider

VAT reverse charge may be coming to the construction sector
12/06/2018 - More...
HMRC has launched a new consultation inviting comments from interested parties regarding the

Search

Our Address

Greenwood Wilson
The Old School
The Stennack
St Ives
Cornwall
TR26 1QU

Contact Us

tel: 01736 795753
fax: 01736 798642
This email address is being protected from spambots. You need JavaScript enabled to view it.

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login