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A better bet

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14 December 2010
Issue: 4285 / Categories: Forum & Feedback
The major shareholder and director of a bookmaking company also make bets privately. He is purchasing some software to assist in determining which bets to make, but will this affect whether any winnings should be subject to tax?

I have been approached by a client who is a majority shareholder and director of an on-course rails bookmaking company asking me to clarify his personal income tax position in respect of bets he makes on betting exchanges.

He considers that these bets are private and are made in his personal time and are therefore not part of the company’s business. However he has been prompted to consider his income tax position as he is about to invest in some software known as a ‘BOT’.

This automatically screens bets made on the exchange and assists the user to make a decision as to which bets to take. By using this software my client believes that he will make a profit from his bets using his bookmaker’s skills.

Is he in effect carrying on a business in his personal capacity?

Query 17 719 – Better

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