Malcolm Finney considers whether gambling winnings are taxable.  

The tax legislation (at ITTOIA 2005, Pt 5, Ch 8) includes the category ‘Income not otherwise charged’ (previously Schedule D Case VI); but gambling winnings do not fall within Chapter 8; nor indeed do they generally fall within ITTOIA 2005, Pt 2 ‘Trading income’.  

Amateur or professional? 

Gambling winnings are not considered as the fruit of carrying on a trade or profession (Graham v Green [1925] 2 KB 37; see below). Gambling is seen as a mere wager. In undertaking gambling (unlike a trade), there is no attempt to make profits by undertaking an organised activity. No services are being provided when undertaking a gambling transaction (although income arising to a tipster who provides tips on a regular basis in return for payment is subject to income tax under ITTOIA 2005, Pt 2) (