Editorial note: this guide explains UK tax in general terms only. It is not financial, tax or legal advice and is not specific to any prize offered by Fortune Games. Tax rules and allowances change and depend on your circumstances, so check GOV.UK or speak to a qualified adviser before acting.
Can you give a competition prize to someone else?
Usually yes, but with two caveats. First, the operator’s terms may require the prize to be issued to the named winner — the person whose entry won — before you do anything with it. Second, once it is yours, giving it away is a gift, which has no UK gift tax, although very large gifts can have inheritance tax implications if you die within seven years. For most everyday gifts, neither is a problem.
What the operator allows
Prizes are awarded to the winning entrant, and many operators will only hand over, register or transfer a prize in that person’s name — particularly for cars, property or anything needing documentation. Some terms restrict transferring a prize to someone else, or require their approval first. So before promising a prize to a friend or relative, check the rules and speak to the operator. Once the prize has been properly issued to you, though, what you then do with your own property is generally up to you.
The tax side of giving it away
The win itself is tax-free in the UK whether it is cash or goods. Handing it on is treated as a gift, and the UK has no gift tax, so giving money or an item to family or friends does not trigger an immediate charge. The main thing to be aware of is inheritance tax: most gifts fall outside your estate if you live seven years after making them, but a large gift made within seven years of death can count towards inheritance tax. For sizeable gifts, a quick word with an adviser is wise.
Frequently asked questions
Can I give my competition prize to a friend?
Usually yes once it has been issued to you, but check the terms first — some operators require the prize to go to the named winner or restrict transferring it to someone else.
Is there tax on giving a prize away?
No UK gift tax applies, so giving cash or an item away does not trigger an immediate charge. Very large gifts can affect inheritance tax if you die within seven years.
Can the operator stop me transferring a prize?
Sometimes. Terms may require the prize to be registered to the named winner, especially for cars or property, or may need the operator’s approval to transfer it. Read the rules.
Does giving a prize away affect the winner’s tax?
The win stays tax-free. Gifting it is a separate matter governed by inheritance tax rules on large gifts, not income tax, so most ordinary gifts have no tax effect.
Related guides: Can you sell a competition prize? · Tax on competition winnings · Can you gift lottery winnings?
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