Do You Pay Tax on Horse Racing Winnings in the UK?

One of the most common questions punters ask is whether they need to pay tax on horse racing winnings. The short answer is: No. Betting profits are completely tax-free in the UK.

Why Don’t Punters Pay Tax?

Until 2001, punters did pay a betting duty. That changed when the government introduced a new system where bookmakers, not bettors, pay tax. This system is much fairer for customers and has made the UK one of the most punter-friendly betting markets in the world.

So Who Pays the Tax?

• Bookmakers now pay a 15% General Betting Duty on their gross profits.
• Racing also benefits from the Horserace Betting Levy, which channels bookmaker contributions back into prize money, training, and integrity services.

In short: your winnings are yours to keep, but bookies still pay their share to the Treasury.

What About Professional Gamblers?

Even full-time punters generally don’t pay tax on their profits. HMRC does not class gambling as a trade, so betting earnings aren’t subject to income tax. However, income from running a tipping service or related business is taxable.

Summary

• No tax on winnings for UK punters.
• Bookmakers pay tax, not bettors.
• Racing is funded by the Horserace Betting Levy.

So next time you land a big winner, remember: your profits are safe from the taxman.