Theoretical Tax Question - Bbc Antiques Roadshow Massive Sale

[DTCwordfan]

There was a recent programme where the Scot who has the auction house in Carlisle, Paul? found a very early camera with colloid accessories and bought it for £60. It sold at auction for £20k, creating a record not only for the Antiques Road Trip but also the auction house for a general sale. In this case, the gain went to charity.....

My thoughts have turned to Bargain Hunt, two couples competing, given 300 quid and then they share in any profits. Now what would have happened if the above had occurred on the programme, the competing pair sharing a gain of nearly £10k each - how would the taxman see this, as income and therefore taxable?

[emeritus]

All prize winnings Including the lottery are Tax Free in the UK. Tax only kicks in if some or all of the winnings are given away

[Peter Pedant]

but these arent winnings....

[DTCwordfan]

exactly......they are given 300 to begin with.

[woofgang]

the prize money they win on bargain hunt is any difference between what they bought he item for and what it sold for....so the money they are given to spend is either returned unspent or taken back from the sale of the items....in this case then surely the prize money they win is a prize and therefore tax free?
As far as gifts from lottery wins, its my understanding that for tax purposes, its the same as any other monetary gift and HMIT only want a share if the donor lives less than 7 years after giving the gift.

[DTCwordfan]

interested if we have any fully fledged FCAs on - my accountancy knowledge on this is not up to date....you maybe right wolfgang but it's the giving of any cash in the outlay that worries me as to the so-called prize-money becoming income indirectly so. Do we have any financial gurus to the equiv. of Barmaid in the legal domain?

[woofgang]

I am not a financial wizz (understatement ha) but I think that they aren't given the money? They can't use it for whatever they want, anything unspent is returned and the purchase price is taken back from whatever the item is sold for. They "hold" the money but the game could be played just as well if both teams had a BBC money holder who went round and paid for whatever the contestants chose.

[DTCwordfan]

interesting to have the accountant view on this though! (or an HMRC spokesperson if we have somebody on AB from HM's team).

[murraymints]

the winners of bargain hunt keep the profit as their prize..so wouldn't that be tax free to winners ?