Policy paper

Statement of Practice C1

Published 31 March 1978

Statement of Practice C1

Where a football pool or small lottery is to be run by a supporters’ club or other society on the basis that a stated percentage or fraction of the cost of each ticket will be given to a club or body conducted and established wholly or mainly for one or more of the purposes specified in the Lotteries and Amusements Act 1976 s 5(1) HM Revenue and Customs (HMRC) will accept that the donation element as stated in the cost of each ticket may be excluded in computing for tax purposes the profits of the trade of promoting the pool or lottery.

A football pools run by a supporters’ club had its appeal against tax assessment upheld by the Special Commissioners. When this question was raised in Parliament on 14 December 1956, Mr Henry Brooke said:

“The football pool in this case was organised on the basis that a specified percentage of the sum received from each competitor would be paid as a gift to the football club. The Special Commissioners have held that this donation element formed no part of the receipts to be taken into account in computing for Income Tax purposes the profits of the trade of promoting the pool. This decision will be accepted by HMRC as governing all cases where a football pool or small lottery is run by a supporters’ club or other society on the basis that a stated percentage or fraction of the cost of each ticket or chance will be given to a club or body established and conducted wholly or mainly for one or more of the purposes specified in the Small Lotteries and Gaming Act 1956 s 1(1).”