Question
If my company gambles upon horse-racing and wins are the profits tax-free ?Answer
I’m not 100% confident about my answer, but my understanding is that yes, gains from gambling winnings are exempt from corporation tax. This seems to be confirmed in the following HMRC document (look about half way down under "Capital Gains Tax and company gains within Corporation Tax").
However, If your company’s sole trade is gambling then I think there’s a good chance winnings would be taxable, but losses would then be a deductible expense too, so you’d only pay tax on net winnings (if any).
I’d suggest double checking with your accountant for clarification – and if any readers can help please post below.
If my company gambles upon horse-racing and wins are the profits tax-free ?Answer
I’m not 100% confident about my answer, but my understanding is that yes, gains from gambling winnings are exempt from corporation tax. This seems to be confirmed in the following HMRC document (look about half way down under "Capital Gains Tax and company gains within Corporation Tax").
However, If your company’s sole trade is gambling then I think there’s a good chance winnings would be taxable, but losses would then be a deductible expense too, so you’d only pay tax on net winnings (if any).
I’d suggest double checking with your accountant for clarification – and if any readers can help please post below.
Read this Q and A at http://www.candidmoney.com/questions/question259.aspx
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