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HMRC’s manuals consider the question of whether professional gambling is a trade – and therefore taxable – or not. According to HMRC and reinforced by a number of court cases, the answer is that gambling is not a taxable trade. This conclusion applies 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 activity 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 fees 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.

Gambling winnings in the UK are also tax-free regardless of whether it is your main source of income or a simple hobby.

Source: New feed