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 sell a competition prize?
Yes — once a prize is yours, it is yours to sell. The prize itself came to you tax-free, but selling an asset that has risen in value can trigger capital gains tax on the gain above your annual allowance. In practice, most everyday prizes lose value rather than gain it, so a tax bill is the exception, not the rule.
Selling is allowed
A prize won fairly belongs to you, and there is no rule stopping you selling it. People sell competition cars, gadgets, holidays they cannot use and even houses all the time. The only things to watch are the operator’s terms (occasionally a prize cannot be transferred before it is formally yours) and, for higher-value items, the tax position when you sell.
When capital gains tax applies
Capital gains tax is charged on the gain you make when you sell an asset that has increased in value, above your annual tax-free allowance — £3,000 for 2025/26. Crucially, the gain is measured from the prize’s value when you won it, not from zero, so you only pay on any rise after that. Private cars are exempt from CGT entirely, and personal possessions sold for under £6,000 are also exempt.
Why most prizes never trigger a bill
Most prizes — cars, electronics, appliances, holidays — depreciate, so selling them produces a loss, not a gain, and no CGT. A bill is realistic only for assets that appreciate, such as a property held as a second home, or possibly jewellery, art or collectibles sold above the chattels limit. If you win something genuinely valuable and plan to sell, it is worth a quick word with an accountant first.
Frequently asked questions
Will I pay capital gains tax on a car I sell?
No. Private motor cars are exempt from CGT in the UK, so selling a car you have won does not create a charge, however good the price.
What is the capital gains allowance?
The annual exempt amount is £3,000 for the 2025/26 tax year. You only pay CGT on gains above that figure, after deducting any allowable losses.
Do most prizes trigger a tax bill when sold?
No. Most prizes depreciate, so selling them creates a loss rather than a gain. CGT mainly affects appreciating assets such as a second property.
Can I sell a prize before it transfers to me?
Sometimes the terms require the prize to be formally yours first. Check the operator’s rules — many also offer a cash alternative if you would rather not own the item.
Related guides: Tax on competition winnings · Winning a car in a competition · What is a cash alternative?
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