When lottery winnings are taxed?

What if I win a big jackpot? At what amount are lottery winnings taxed?

Answers( 1 )


It depends on where you live. In the UK, lottery winnings are not considered as income so they are not taxable:

https://www.theguardian.com/money/2012/sep/10/do-you-pay-tax-lottery-win

On the other hand, once you claim your winnings and put it in your bank account, your prize will be subject to taxes. Your winnings will become part of your estate and if your estate is worth over £325,000, it will be subject to a 40% inheritance tax.

Keep in mind that the tax rules for lotto vary from country to country. For instance, in the US, Spain, Portugal and Switzerland, among other countries, lottery winnings are taxable. It is best to consult an accountant from your country of residence to know if you should pay taxes for your win.



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