Calculate Tax on Prize Winnings
Frequently Asked Questions
Are lottery and gambling prize winnings taxable in the UK?
No. Winnings from the National Lottery, football pools, horse racing, casino games, bingo, and other forms of gambling are completely tax-free in the UK. HMRC does not tax gambling winnings for individual punters. The operators pay Gambling Duty and Remote Gaming Duty instead.
Are competition prizes from skill-based contests taxable?
Potentially yes. If a cash or valuable prize is awarded for a skill-based competition — such as a writing contest, business competition, or design award — and it is connected to your trade or profession, HMRC may treat it as taxable income. Prizes from purely recreational or hobby competitions are generally not taxable.
Are Premium Bond prizes taxable?
No. All Premium Bond prizes, regardless of size, are completely tax-free in the UK. They are exempt from Income Tax and Capital Gains Tax under section 694 ITTOIA 2005.
Are TV show prize winnings taxable?
Generally no for quiz shows and game shows where participation is not tied to employment. However, if a prize is paid in connection with a commercial arrangement — for example, a promotional competition linked to your business — it may be taxable. Employer-funded awards and incentive schemes are treated as employment income.
What if my employer gives me a prize or award?
Employer recognition awards in cash are always taxable as employment income, subject to income tax and National Insurance. Non-cash awards (vouchers, gifts) over £250 per year are also taxable benefits in kind, reported on a P11D. Some non-cash long-service awards up to £50 per year of service may be exempt.