Summary
The appellant’s gambling winnings were not taxable income, as HM Revenue and Customs (HMRC) was unable to satisfy the First-tier Tribunal (FTT) that the appellant was engaged in a trade of gambling, and his appeal against discovery assessments and penalties for failure to notify was allowed.
Background
The appellant’s last declared employment was in or about 1998. Since then, he had not been employed or self-employed in any capacity. The appellant took up serious gambling in or about 1999.
The appellant’s gambling took the form of: (a) an elaborate system of betting on British and European football results; and (b) increasingly higher stakes private poker games. All his dealings were in cash. This continued until 2010, when the appellant recognised that his increasingly unhealthy style of life could no longer continue.
He spent the next two