Differences

This shows you the differences between two versions of the page.

Link to this comparison view

Next revision
Previous revision
ibex:radmin_raffle [2019-03-17 20:06] – created katerichibex:radmin_raffle [2019-03-18 13:13] (current) katerich
Line 17: Line 17:
 **RADMIN:** Yes! **RADMIN:** Yes!
  
-**Q:** What is the legal status of this raffle? Do we need use the Chatham House Rules, in that we might not want to talk about it outside of this room>?As far as I know, in the UK you're not allowed to gamble without a license?+**Q:** What is the legal status of this raffle? Do we need use the Chatham House Rules, in that we might not want to talk about it outside of this room?As far as I know, in the UK you're not allowed to gamble without a license?
  
 **RADMIN:** Under the Gambling Act 2005 it is legal to hold a raffle in the UK if the prize is under £20K. This raffle also qualifies as an incidental non-commercial lottery (with no license needed) so long as all tickets are sold at the event, and the organisers don't spend more than £100 of the raffle income on expenses. In our case the raffle takings were £32 (32 tickets sold at £1 each, all during RADMIN). **RADMIN:** Under the Gambling Act 2005 it is legal to hold a raffle in the UK if the prize is under £20K. This raffle also qualifies as an incidental non-commercial lottery (with no license needed) so long as all tickets are sold at the event, and the organisers don't spend more than £100 of the raffle income on expenses. In our case the raffle takings were £32 (32 tickets sold at £1 each, all during RADMIN).
Line 53: Line 53:
 **Q:** Is the money taxable? **Q:** Is the money taxable?
  
-**RADMIN:** I think so. But there are a lot of variables. In the UK lottery winnings and gambling are exempt from tax. However this raffle is not a licensed lottery, it's not clear if it counts as gambling. There is not a lot of literature about cash raffles - and I would note that this raffle is a kind of inversion, normally raffles are there to raise cash, not disburse it. There are also ambiguities particular to the RADMIN context. For example in UK tax regulations, prizes are subject to tax if they're considered income generated by your business. For literary awards and prizes, HMRC says, 'the determining factor in considering whether or not such an award etc is taxable is the quality of the award in the hands of the recipient. If it comes to the individual as an incident in the exercise of his or her profession or vocation (including a subsidiary or part-time activity the profits from which are charged to Income Tax as the profits of a profession), it should normally be treated as a professional receipt and included in the computation of the taxable profits'. (HMRC Business Income Manual BIM50710) https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim50710 +**RADMIN:** I think so. But there are a lot of variables. In the UK lottery winnings and gambling are exempt from tax. However this raffle is not a licensed lottery, it's not clear if it counts as gambling. There is not a lot of literature about cash raffles - and I would note that this raffle is a kind of inversion, normally raffles are there to raise cash, not disburse it. There are also ambiguities particular to the RADMIN context. For example in UK tax regulations, prizes are subject to tax if they're considered income generated by your business. For literary awards and prizes, HMRC says, //'the determining factor in considering whether or not such an award etc is taxable is the quality of the award in the hands of the recipient. If it comes to the individual as an incident in the exercise of his or her profession or vocation (including a subsidiary or part-time activity the profits from which are charged to Income Tax as the profits of a profession), it should normally be treated as a professional receipt and included in the computation of the taxable profits'.// (HMRC Business Income Manual BIM50710) https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim50710 
 So if you were to be awarded such a prize as a 'hobbyist' you might not have to pay tax. Does the fact that the quality of your raffle pitch is unrelated to your chance of winning exempt if from these conditions? It's unclear. At the same time,grants for artists are arguably not taxable if they are used to buy your time, not fund expenses, see https://www.artquest.org.uk/artlaw-article/do-i-have-to-pay-tax-on-the-award-or-grant-i-have-been-given. So there are multiple grey areas. We can possibly run such questions by the Cube's accountant. The prize money does not have any connection with  the Cube, but he may be able to advise.  So if you were to be awarded such a prize as a 'hobbyist' you might not have to pay tax. Does the fact that the quality of your raffle pitch is unrelated to your chance of winning exempt if from these conditions? It's unclear. At the same time,grants for artists are arguably not taxable if they are used to buy your time, not fund expenses, see https://www.artquest.org.uk/artlaw-article/do-i-have-to-pay-tax-on-the-award-or-grant-i-have-been-given. So there are multiple grey areas. We can possibly run such questions by the Cube's accountant. The prize money does not have any connection with  the Cube, but he may be able to advise. 
  
  • ibex/radmin_raffle.1552853180.txt.gz
  • Last modified: 2019-03-17 20:06
  • by katerich