Extract from lottery site
Q.Why is a syndicate agreement necessary?
A.
National Lottery prizes are not normally chargeable gains for the purposes of UK Capital Gains Tax and will not be assessed for UK Income Tax. If a prize is won and shared by a syndicate who have entered into a written agreement before the win, then syndicate members should not be liable to pay UK inheritance tax.
In the event of a big win, HM Revenue and Customs may require to see the agreement as evidence of the group agreement. In the absence of a suitably drawn up syndicate agreement, any of the prize monies distributed to other syndicate winners may be subject to inheritance tax. It is important to note that HM Revenue and Customs law and practice may change. The comments are based on our understanding of HM Revenue and Customs law and practice as at September 2010. For detailed tax advice, please contact a solicitor or a suitably qualified tax professional.
Neither The National Lottery nor Camelot UK Lotteries Limited has any responsibility or liability for the organisation, management or operation of any syndicate.
full details here
http://www.national-l...p/help/syndicates.ftl