Lottery win , can anyone answer this question.
Discussion
Just seen the two girls from Sunderland who've won £15 m between them , that's lead to a question I can't answer.
Theoretically someone wins the lottery for say £5m do they .
1. Claim the lot for themselves and distribute as he or she sees fit ?
2. Form a syndicate between winning the lottery and presenting the winning ticket for payment , to distribute amongst say friends or family to reduce any potential tax liabilities ?
3. Do they get this advice from Camelot or who ever it is prior to claiming the payment ?
Anyone have any knowledge of such things ?
Theoretically someone wins the lottery for say £5m do they .
1. Claim the lot for themselves and distribute as he or she sees fit ?
2. Form a syndicate between winning the lottery and presenting the winning ticket for payment , to distribute amongst say friends or family to reduce any potential tax liabilities ?
3. Do they get this advice from Camelot or who ever it is prior to claiming the payment ?
Anyone have any knowledge of such things ?
alorotom said:
Camelot provide this advice via a legal firm (whom a friend was a financial consultant for before moving on to Barclays as a VP) ... I know one millionaire winner personally (also Sunderland) who received this advice and it helped them around the system to maximise their benefit
But only if you agree to go public. If not you sort out your own financial advice.
One of the first things they ask you to do when you call them up hyperventilating and screaming because you've just left the rat race is to sign the back of the ticket and add your details.
If you’re sharing the prize your supposed to add both names, but I guess if it’s a 15 person syndicate you might run into trouble there. They prefer to give out big prizes directly to each winner – you agree that it’s a joint win, they pay it out to each winner. If you’re married or in a long term relationship you might decide to share the prize with your other half. It avoids that 7 year rule thing.
I’ve overheard some winners told even tell their OH, I don’t know how that’d work? “Hi Hun, good day? – by the way, I’ve quit work and we’re moving. Please mind the Ferrari in the garage when you put the bins out. What’s happened? Nothing, why’d you ask?”. I guess they’d either change their mind later, or they’d be one of those strange types who turns up to work the next day like nothing happened.
I only know this because I used to share an office with Coutts who used to at one time anyway offer accounts to big winners thanks to some deal with Camelot.
If you’re sharing the prize your supposed to add both names, but I guess if it’s a 15 person syndicate you might run into trouble there. They prefer to give out big prizes directly to each winner – you agree that it’s a joint win, they pay it out to each winner. If you’re married or in a long term relationship you might decide to share the prize with your other half. It avoids that 7 year rule thing.
I’ve overheard some winners told even tell their OH, I don’t know how that’d work? “Hi Hun, good day? – by the way, I’ve quit work and we’re moving. Please mind the Ferrari in the garage when you put the bins out. What’s happened? Nothing, why’d you ask?”. I guess they’d either change their mind later, or they’d be one of those strange types who turns up to work the next day like nothing happened.
I only know this because I used to share an office with Coutts who used to at one time anyway offer accounts to big winners thanks to some deal with Camelot.
If you give everything to your kids when you're on your deathbed, obviously it's taxable because you're just trying to evade IHT.
If you gave your kids 10k each for a house deposit and died in a freak accident next day (for arguments sake a landslide or earthquake), wouldn't they look at the circumstances and class it as a gift?
If you gave your kids 10k each for a house deposit and died in a freak accident next day (for arguments sake a landslide or earthquake), wouldn't they look at the circumstances and class it as a gift?
Jimmy Recard said:
If you give everything to your kids when you're on your deathbed, obviously it's taxable because you're just trying to evade IHT.
If you gave your kids 10k each for a house deposit and died in a freak accident next day (for arguments sake a landslide or earthquake), wouldn't they look at the circumstances and class it as a gift?
If you gave your kids 10k each for a house deposit and died in a freak accident next day (for arguments sake a landslide or earthquake), wouldn't they look at the circumstances and class it as a gift?
I don't think HMRC consider things on a case-by-case basis and make judgement calls on intent. They stick rigidly to the rules. You can't blame them, Tax Payers do exactly the same.
Davey S2 said:
alorotom said:
Camelot provide this advice via a legal firm (whom a friend was a financial consultant for before moving on to Barclays as a VP) ... I know one millionaire winner personally (also Sunderland) who received this advice and it helped them around the system to maximise their benefit
But only if you agree to go public. If not you sort out your own financial advice.P-Jay said:
I don't think HMRC consider things on a case-by-case basis and make judgement calls on intent. They stick rigidly to the rules. You can't blame them, Tax Payers do exactly the same.
Jimmy Recard said:
If you give everything to your kids when you're on your deathbed, obviously it's taxable because you're just trying to evade IHT.
If you gave your kids 10k each for a house deposit and died in a freak accident next day (for arguments sake a landslide or earthquake), wouldn't they look at the circumstances and class it as a gift?
It depends what your estate was worth. If it was below the current threshold for inheritance tax, then it wouldn't matter.If you gave your kids 10k each for a house deposit and died in a freak accident next day (for arguments sake a landslide or earthquake), wouldn't they look at the circumstances and class it as a gift?
Tim
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