UK Poker Tax

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tcummo

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Hi all,
I've been reading the posts about PS buys FT (great news) and U.S players are
mentioning the IRS (income tax).
Does anybody know what the 'tax' situation is for online poker in the U.K?
Thanks.
 
WVHillbilly

WVHillbilly

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Pretty sure it's tax free in the UK.
 
Coffee

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I am not a expert. But as i understand it some are tax free and some are not.

For the U.K. winnings are normally tax free.

For the EU in general, if the online poker site is domiciled in a EU or EEA country, then it is tax free.
If not then you should pay income tax if your government wants you to...
But cross-check it! :)
 
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Jagsti

Jagsti

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Its free in UK.... for now! Heard rumours they might be looking into it, Bastids!
 
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orangepeeleo

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Surely theyd have to tax all gambling winnings if they taxed poker winnings? Cant see the UK's (MANY) gamblers being very happy with that.
 
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There are two types of tax (of note here, obviously there are many other taxes too).
A service tax and Income tax.

In the USA all income is taxed which is why they have to declare winnings as monies earnt to the IRS.

In the UK winnings from prizes or gambling or not classed as earnings and not declared as income for amateurs. (Although once they become an asset earning interest this is taxed like any other savings).

If gambling is the primary source of income, then this is a professional status and the income would be declared, but also some expenses can be offset.


The Service Tax is normally applied at source collected and paid by the service provider (like VAT).
But when the service provider is registered offshore they manage to avoid it.
This is why france and other countries now have to use locally registered poker sites so the rake can have gambling tax added. Which the UK (Bastids) have noticed and are now considering.


So in short, at the moment you don't have to worry about any tax on poker as a UK player.
 
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tcummo

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There are two types of tax (of note here, obviously there are many other taxes too).
A service tax and Income tax.

In the USA all income is taxed which is why they have to declare winnings as monies earnt to the IRS.

In the UK winnings from prizes or gambling or not classed as earnings and not declared as income for amateurs. (Although once they become an asset earning interest this is taxed like any other savings).

If gambling is the primary source of income, then this is a professional status and the income would be declared, but also some expenses can be offset.


The Service Tax is normally applied at source collected and paid by the service provider (like VAT).
But when the service provider is registered offshore they manage to avoid it.
This is why France and other countries now have to use locally registered poker sites so the rake can have gambling tax added. Which the UK (Bastids) have noticed and are now considering.


So in short, at the moment you don't have to worry about any tax on poker as a UK player.

Thanks for this, I was just wondering in case I ever 'got lucky'.
Lol
 
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trolllord59

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Legally speaking on an individual level in the Uk and other nations poker is considered gambling and money made from gambling as a whole is not considered income and therefore is not taxed. Why this is because the amount of people that lose from gambling far outweighs the amount of winners. However gambling is taxed on a corporate level to casinos and its operators.
 
Coffee

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Legally speaking on an individual level in the Uk and other nations poker is considered gambling and money made from gambling as a whole is not considered income and therefore is not taxed. Why this is because the amount of people that lose from gambling far outweighs the amount of winners. However gambling is taxed on a corporate level to casinos and its operators.
Sadly not all governments see it this way.

Some (like the Swedish and others as well) see winnings as an income. The even see every individual hand or tournament as a individual lottery. So they do not want to accepts losses from other games as write off against winnings in other hands/tournament.
Only if you play with there own "utility" gambling casino then taxes are included. Or if you play in a other EU/EEA country, then free trade / that country rules trumps.

So to some people it matters a lot where the casino domiciled :s:
 
Tom1559

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Poker winnings in the UK are tax free at least for now. However I guess it is only a matter of time before HMRC find a way to get their hands on some of our hard earned profit from poker.
 
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orangepeeleo

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I don't think that will ever happen, britains a nation of gamblers, if they taxed poker winnings they'd have to tax all gambling winnings, and people would kick off big time!
 
imafin

imafin

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im a prisoner in this free country called the usa...costa rica anyone!
 
Egon Towst

Egon Towst

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What Chemist said, basically. Poker winnings are tax-free in the UK as long as you are an amateur player.
 
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