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HMRC internal manual

Business Income Manual

Measuring the profits (particular trades): Lotteries promoted by sport supporters’ societies: tickets and other media

Where there is a printed ticket, then the more information included on the ticket about:

  • the percentage of the ticket price to be donated,
  • the identities of the beneficiaries,
  • the purposes the money will be used for,

then the easier it will be for the promoter to establish that the requirements of SP C1 have been met.

However, modern ways of producing and selling tickets or chances mean it is unrealistic to insist on all relevant details being printed on a single piece of paper. Scratch cards and internet lotteries are now common. Some lotteries use, for example, loudspeaker announcements or electronic displays at football matches to give details of prizes and the donated element of the purchase price.

Where the customer’s stake is not exchanged for a paper ticket showing all the required information, then the information necessary to establish there is a donation element in the purchase price, satisfying the conditions of SP C1 (BIM61601), must be made readily accessible to customers at the time of purchase. This could be in the form of a leaflet handed out with the ticket, a prominent sign at the point of sale, or - in the case of an internet lottery - the terms and conditions given on the relevant website.

In this situation the promoter will need to record details of the system used to tell customers about the amount and destination of their donation, and of the information provided to them. This is necessary so that the promoter can show at a later date (for example, in response to an HMRC enquiry) that the requirements of the Statement of Practice have been met.