Win a UK Cottage for a Fiver....

[pharvey]

This type of raffle seems to be getting popular in the UK. These guys are putting up a £290,000 K cottage for raffle at £5 per ticket - they have set (and passed) a minimum for ticket sales at 80,000, so have already achieved sales of + £400 K. Could well be the way forward to sell a house!!

https://www.cwellyndream.com/home?ref=d ... 001914083c

[dtaai-maai]

It looks delightful!

Erm, one question before I buy my ticket. I see it's in Wales - it's not next door to you by any chance, is it?

[pharvey]

It looks delightful!

Erm, one question before I buy my ticket. I see it's in Wales - it's not next door to you by any chance, is it?

You're OK, it's a little way north from me......

[EDIT] Of course you'll invite the LHG and myself for a BBQ should you win?

[PeteC]

I wonder how the tax authorities will look at something like that? It's basically winnings from gambling and they may base tax on the assessment value of the house, that the winner will have to pay..... and the normal proceeds from sale (capital gains) that the seller will have to pay.

Could be a bit of a can o' worms.

[pharvey]

I wonder how the tax authorities will look at something like that? It's basically winnings from gambling and they may base tax on the assessment value of the house, that the winner will have to pay..... and the normal proceeds from sale (capital gains) that the seller will have to pay.

Could be a bit of a can o' worms.

Good point - don't know whether it would be classed as "capital gains" (for either party). Lotto (gambling) winners in the UK at least receive their winnings "Tax Free", so possibly the same here. This couple are also giving "some" of the proceeds to charity, so I would assume that would work in their favour with regards to tax (?).

[PeteC]

When Migrant appears he may be able to indicate how the USA would treat it, just as a general guide.

[pharvey]

When Migrant appears he may be able to indicate how the USA would treat it, just as a general guide.

Out of interest, looked at the T's & C's: -

"“Prize”: The Prize is Cwellyn Cottage, Rhoslan, Criccieth LL52 0NB, a freehold detached stone cottage. All UK taxes including stamp duty will be covered by the promoter. The winner’s conveyance fees up to and including £1500 + VAT, will also be paid for by the Promoter. The Winner may choose their own conveyancy solicitor. The property is mortgage free, and will be furnished minus artwork and personal items."

"“Question”: The Question that each Entrant must correctly answer in order to have the opportunity to win the prize (in accordance with the Gambling Commission’s Rules and Guidelines regarding Skilled Prize Competitions). The website randomly generates a question from a selection set by the Promoters. The Promoter sets the questions and determines the correct answers."


Perhaps the "Skilled Prize Competitions" mentioned above is a loophole(?).

[handdrummer]

In the US people do this quite a bit; it's called an auction.

[migrant]

When Migrant appears he may be able to indicate how the USA would treat it, just as a general guide.

This type of raffle is getting more common in the states too with a house as the prize. Usually there is also a cash option.

Taxes are owed on it so usually there is small print somewhere in the raffle papers saying if you win you will be able to pay the tax.

[migrant]

In the US people do this quite a bit; it's called an auction.

A little different here. We used to enter a raffle like this, tickets $50 with the grand prize a house valued around 3,000,000. So if your lucky you could get the house for a single ticket (and taxes of course)

[handdrummer]

In the US people do this quite a bit; it's called an auction.

A little different here. We used to enter a raffle like this, tickets $50 with the grand prize a house valued around 3,000,000. So if your lucky you could get the house for a single ticket (and taxes of course)

I'd be willing to pay the taxes for a 3 mil. house.
Also, I made a mistake, in the US it's also called a raffle. It's not based on bidding. Some days.........

[HHTel]

Here we go:

HMRC state that, for raffled homes, Capital Gains Tax is based on the open market value on the date of attaining the property. This means that if the winner of the property raffle was to sell their current house immediately there would likely be no Capital Gains Tax to pay.