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Overview

Lottery Duty is a duty on taking a chance or ticket in a lottery promoted in the UK. All lawful lotteries are exempt from the duty except the National Lottery.

Notice 458 Lottery Duty gives more information about the duty, including which lotteries are exempt.

Rate

The duty rate is 12% of:

• all stake money paid in the accounting period
• stake money payable, but not yet received, on any tickets or chances taken in the accounting period

You can鈥檛 make any deductions from the amount you鈥檙e due to pay duty on.

Register

If you鈥檙e the licence holder for the National Lottery, or you鈥檙e running a lottery that鈥檚 not listed in the exemptions, you must register for Lottery Duty.

You should send your completed application form BD601 Application for registration as a lottery promoter to HM Revenue and Customs (HMRC) at least 15 days before you intend to promote a chargeable lottery.

Returns and payments

HMRC will send you a 鈥榥otice to file鈥� to let you know when your return is due.

You must send a Lottery Duty online return (BD600) quoting your 15-digit reference number. You can use a single return for all chargeable lotteries you promote within the accounting period.

Make sure you send your return so it reaches HMRC by the 13th day following the end of the accounting period. You should complete and send your return even if you鈥檝e not carried out business during that accounting period.

Changes to your details

You should tell HMRC in writing about any changes to the details shown on your registration application, these include:

• a new promoter
• a different address
• a change to your registered address
• if you cease to trade

Penalties and appeals

You could be charged a penalty if:

• you don鈥檛 apply for registration before promoting a chargeable lottery
• you don鈥檛 notify HMRC of any business changes at the right time
• your return or other tax document isn鈥檛 accurate and as a result you don鈥檛 pay enough duty
• you don鈥檛 tell HMRC if a duty assessment sent to you is too low

Find out more about penalties you may have to pay HMRC.

If you鈥檝e been given a penalty and you think it鈥檚 wrong, you can send an appeal to HMRC.

Record keeping

You must keep suitable records to work out the duty you owe and allow HMRC carry out checks. The law doesn鈥檛 specify how you should do this, but HMRC can say what form they must take.

VAT

Providing facilities for playing games of chance such as lotteries is normally exempt from VAT, but there are some important exceptions.

Find out more about VAT and Lottery Duty in Notice 701/29 betting, gaming and lotteries.