Giving a gift out of lotto winnings

P

Pat Ryan

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Just wondering about the tax implications of giving a gift out of lotto winnings
Section 82 of the 2003 Act (http://www.irishstatutebook.ie/2003/en/act/pub/0001/sec0082.html)
says that the receipt of winnings from lottery is not a gift.

But I presume that is for the actually winner only?

Say I won (I didn't) and I wanted to make a large gift to my sister would she then be subject to CAT/gift tax on it as although it is lottery winnings it is not direct from the national lottery.
 
Yes, she'd be subject to gift tax in the normal way.

If one won the Lotto and wanted to dish out gifts to family, it might make sense to have created a syndicate...
 
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Thanks. Ya, I was wondering about claiming it was a syndicate - but everyone would be getting different amounts so surely it would be obvious that is was an attempt to avoid tax?
 
True. Fair point.

I usually play a €6 quick pick on the euromillions (2 lines and the plus)
So would be arguing that some syndicate members contributed enough to get a few mill and others to get few hundred thousand!!

Suppose would have to claim that any big gifts you were giving were part of the syndicate and take the tax hit on "small" gifts otherwise if an over zealous revenue official wanted to they could easily spot that in reality it was a tax avoidance scheme and be within their rights to issue a tax demand.
 
How would that be an over zealous revenue official?
 
Jon Snow said:
How would that be an over zealous revenue official?
Click to expand...

For "over zealous", read "competent"...

If I played the Lotto (I don't), I would do so on the basis of it being a syndicate of family members. The inability of minor children to play it would obviously have to be covered off with a simple trust arrangement.
 
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