Lottery Win / Gifts

[Dollie]

Just supposing (and it hasn't happened to me) but if my mum won a few million on the lottery - what would be the best way to distribute it amongst my and my sisters? Mum says that we would all pay 90% in tax on any winnings she was to gift us, but I don't think it would be that much. And also my mum, if she were to win the lottery I think that winnings are tax free ?? I know this a hypothetical question (sadly) but it caused a huge family debate at the weekend and I would appreciate knowing the right answers if any of you out there know them. Thanks in anticipation. Doll x

[dzug]

You wouldn't pay ANY tax if she gifted you the money. Winnings are tax free as you say, as are gifts.

The gotcha is that if she were to die within 7 years of making the gift, then there would be inheritance tax to pay - but at 40% maximum, not 90%, and there would be some allowances first.

She either doesnt want to give you anything or just doesn't understand the tax system.

Once you had the money and invested it you would be liable for tax in the interest of course - but not on the gift in the first place.

[Postdog]

Yeah, I'd go along with all that - I thought I'd better check it out in case the euro millions came up, cause if it did, I was going to give most of my colleagues a million so they could get out the job too.


BTW, it didn't happen (yet!)

[Pippa68]

dzug is spot on :o)

[Dollie]

thank you all for your prompt answers - seems momma would be a bit mean if she ever won the lottery !!!

Thanks again. Doll x

[antonioluz]

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