Answers · UK 2025/26
Are lottery winnings taxable in the UK?
No, lottery winnings in the UK are completely tax-free. You pay no Income Tax, Capital Gains Tax or Inheritance Tax on the winnings themselves. However, any interest earned on the prize money is subject to Income Tax above your Personal Savings Allowance.
Full answer
Lottery winnings — including the National Lottery, EuroMillions, scratchcards, premium bonds prizes, raffle prizes and football pools — are exempt from all UK taxes at the time of winning. You receive the full amount free of Income Tax and Capital Gains Tax. The exemption is comprehensive: there is no threshold above which lottery winnings become taxable, unlike in many other countries. However, once you have the money, normal tax rules apply to what you do with it. Interest earned on prize money held in a savings account is subject to Income Tax above your Personal Savings Allowance (£1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers in 2026/27). Investment returns from investing prize money are subject to CGT rules. Gifts of lottery winnings to others could potentially be caught by Inheritance Tax rules if you die within 7 years of making the gift (gifts above the Annual Exemption of £3,000/year use up your nil-rate band). Simply spending prize money or giving it to a spouse/civil partner does not trigger IHT. There is no requirement to declare a lottery win to HMRC. Premium bond prizes are also tax-free (and the interest on premium bonds is technically a prize rather than interest, so it doesn't count toward the Personal Savings Allowance either).
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.