Income Tax Act 2007 section 530

Exemption for profits from lotteries

Section 530 provides an income tax exemption for profits that a charitable trust earns from running a lottery, provided the lottery is properly authorised and the profits are used solely for charitable purposes.

• Profits from lotteries run by charitable trusts can be excluded from total income if two conditions are met
• The lottery must be a lawfully authorised lottery — either an exempt lottery under the Gambling Act 2005, one promoted under a lottery operating licence under that Act, or one conducted under the equivalent Northern Ireland legislation
• All profits from the lottery must be applied exclusively to the purposes of the charitable trust
• If either condition is not met, the lottery profits will be taxable as part of the trust's total income in the normal way