Do You Have to Pay Tax on Awards in the UK?

The UK does not impose taxes on awards granted as a show of honor, distinction or public esteem in recognition of outstanding achievements in a particular field. This includes awards for professional accomplishments. Lottery winnings, including those from the regular lottery, scratch cards or EuroMillions drawings, are also exempt from taxation. There is no tax associated with buying lottery tickets either.

However, if a person wins a prize, prize or sweepstakes or is awarded in a raffle or lottery, federal income tax applies regardless of the amount won. This includes Theatrical Writing Grants, Prizes and Scholarships for Composers. If the expenses incurred by the person in relation to the matters covered by the AIO grant and the BIO grant exceed the amount of the AIO grant, the excess up to the amount of the BIO grant included will be considered covered by the grant of the BIO and, to this extent, will not be admitted as a deduction when calculating taxable benefits. When an employee receives an award for their job duties (e.g.

an award from a third party to an employed salesperson for selling a third party's products), it is always subject to taxes even if it is paid by the third party.

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