Private person - wants to raffle site.

SDMXTWO

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Seeing so many raffles by various clubs, charities etc for houses & cars. Can anyone do this? What are the implications for the 'raffle seller' as there is no charity involved. TiA.
 

Johnno75

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Strictly speaking, any raffle involving “chance” is regulated by the Gaming and Lotteries Acts. You apply to the local Gardai for a licence. However, these rules are observed more in the breach as I’m not sure the laws are even enforced. Running an illegal lottery can render you liable to prosecution.
 

SDMXTWO

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Strictly speaking, any raffle involving “chance” is regulated by the Gaming and Lotteries Acts. You apply to the local Gardai for a licence. However, these rules are observed more in the breach as I’m not sure the laws are even enforced. Running an illegal lottery can render you liable to prosecution.
Thanks. Well I have no intention of running an illegal anything. I have a site which I want to raffle off and am looking to find guidance as to where to start etc. I will try looking for a licence.
 

RedOnion

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Generally speaking when you see a house being raffled here by a private individual, it's actually on a UK site / platform, so it's done under UK law.
Even at that, they aren't lotteries but 'prize competitions' and you have to answer a question to take part. They're doing this to get around specific legislation so they're not true 'raffles'.
 

Johnno75

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Even at that, they aren't lotteries but 'prize competitions' and you have to answer a question to take part. They're doing this to get around specific legislation so they're not true 'raffles'.

This is indeed done to attempt to get around the law. Though whether it does in fact get around the law is another matter.

Such a question (eg. “name the capital of Ireland”) is introduced to such games so as to introduce an “element of skill” to the process, thus purporting to remove the “element of chance” that exists in lotteries.

However, whether posing such a question does in fact introduce any element of skill and thereby successfully circumvent the law is very much open to question.

If 99.99% of people answer the question correctly and one name ends up being pulled from a hat, this reintroduces the element of chance and is therefore more likely to be deemed a lottery. That said, I’m unaware of any case law on the matter, such is the lack of prosecutions in the area.
 

RedOnion

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Hve a read of the Ts & Cs in the following (may help guide you):

https://www.kerrygaa.ie/winahouseinkerry/

[broken link removed]
These are really good examples of genuine lotteries. Both were granted a licence, and details are included on the relevant websites.

If I've understood @SDMXTWO correctly, they are asking about a private individual running a raffle, which is a different proposition.
 

RedOnion

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This is indeed done to attempt to get around the law. Though whether it does in fact get around the law is another matter.
Indeed. There have been a number of these shut down in the UK for not meeting the law.

Another piece is if the raffle doesn't comply with Irish gambling laws, the prize would not be tax free to the winner!
 

Purple

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RTE and Radio stations, which are businesses and not charities, can run 'prize competitions' and don't run into trouble. They have the same simple questions.
 

iamaspinner

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And what happens when you sell the house? Are you liable for CGT or other tax here in Ireland?
 
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Purple

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Are the proceeds from the raffle subject to income tax? I presume so.
The profit from the sale of the site would be subject to CGT.

Big difference.
 

RedOnion

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Are the proceeds from the raffle subject to income tax?
The 'profit' would be subject to income tax. So if you sell more than the house is worth, you'd pay income tax on the difference. So you've the really grey area of valuing a house that wasn't sold on the open market.

Anyone should definitely seek professional tax advice before going down this route.
 

anntionette

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Would you still be subject to irish income tax on any profit if you were non resident at the time of the sale? or subject to income tax in the country you are residing?

I've 2 more years here in UAE so if i sold my property before my return rather then on return as planned ( so i can buy my forever home) I wonder would that be better idea financially?
 
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anntionette

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Just realised maybe the profit from any house sale might actually be considered Capital gains and subject to 33% tax.
 

RedOnion

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The 'profit' would be subject to income tax. So if you sell more than the house is worth, you'd pay income tax on the difference. So you've the really grey area of valuing a house that wasn't sold on the open market.

Anyone should definitely seek professional tax advice before going down this route.
Proposed amendments to the Finance Bill will bring some clarity to the tax treatments.

The treatment of non-cash prizes would be the same as cash prizes.

Where proceeds are in excess of value of PPR house if raffled, the PPR exemption would be restricted to market value and excess charged as CGT.

 

dereko1969

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The OP never specified the rationale for going with a raffle rather than a straight forward sale. Why?
 
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