Lottery Duty

This guide tells you about Lottery Duty, who needs to register and what you need to do.


Lottery Duty is a duty on taking a chance or ticket in a lottery promoted in the UK. All lawful lotteries are exempt from the duty except the National Lottery.

Notice 458 Lottery Duty gives more information about the duty, including which lotteries are exempt.


The duty rate is 12% of:

  • all stake money paid in the accounting period
  • stake money payable, but not yet received, on any tickets or chances taken in the accounting period

You can’t make any deductions from the amount you’re due to pay duty on.


If you’re the licence holder for the National Lottery, or you’re running a lottery that’s not listed in the exemptions, you must register for Lottery Duty.

You should send your completed application form BD601 Application for registration as a lottery promoter to HM Revenue and Customs (HMRC) at least 15 days before you intend to promote a chargeable lottery.

Returns and payments

HMRC will send you a ‘notice to file’ to let you know when your return is due.

You must send a Lottery Duty online return (BD600) quoting your 15-digit reference number. You can use a single return for all chargeable lotteries you promote within the accounting period.

Make sure you send your return so it reaches HMRC by the 13th day following the end of the accounting period. You should complete and send your return even if you’ve not carried out business during that accounting period.

Changes to your details

You should tell HMRC in writing about any changes to the details shown on your registration application, these include:

  • a new promoter
  • a different address
  • a change to your registered address
  • if you cease to trade

Penalties and appeals

You could be charged a penalty if:

  • you don’t apply for registration before promoting a chargeable lottery
  • you don’t notify HMRC of any business changes at the right time
  • your return or other tax document isn’t accurate and as a result you don’t pay enough duty
  • you don’t tell HMRC if a duty assessment sent to you is too low

Find out more about penalties you may have to pay HMRC.

If you’ve been given a penalty and you think it’s wrong, you can send an appeal to HMRC.

Record keeping

You must keep suitable records to work out the duty you owe and allow HMRC carry out checks. The law doesn’t specify how you should do this, but HMRC can say what form they must take.


Providing facilities for playing games of chance such as lotteries is normally exempt from VAT, but there are some important exceptions.

Find out more about VAT and Lottery Duty in Notice 701/29 betting, gaming and lotteries.

Published 13 March 2013