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Ltd Company Gambling

slackdaslackda Trusted RegularRegistered Posts: 460
in General accounting discussion
Ok question for you guys..

Can a Ltd company gamble with its own funds?


i.e could a ltd company set up a scheme where as it deducted £2 from employee's wages (with consent) and as a company registered up with somethign like the lottery and play the lottery on behalf of its employees? or back the money on a horse when the company matches the employee's contributions and takes % of the winnings? If so how would you deal with this??

As Gambling income isn't taxable and the losses aren't tax deductable as far as i am aware, how would that affect things?


Cheers
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Comments

  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    Providing it is within the mem and arts then a company can do as it pleases.

    I am not sure a company can purchase a lottery ticket - you'd have to check the operators terms and conditions.

    Any purchase of lottery tickets or gambling stakes on behalf of an employee would be taxable and nic'able remuneration.
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  • Bookworm55Bookworm55 Trusted Regular Registered Posts: 479
    As Gambling income isn't taxable and the losses aren't tax deductable as far as i am aware, how would that affect things?

    That's not a cast-iron rule as it's possible for an individual to be a self-employed professional gambler, and his gambling income to be subject to incomet tax. I don't know about companies being able to gamble.
    Providing it is within the mem and arts then a company can do as it pleases.

    I didn't think this mattered any more. I thought companies weren't restricted in their activities by their memorandum/articles since the CA2006 came into effect? Or am I confusing the ultra vires rule with something else?
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  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    Bookworm55 wrote: »
    That's not a cast-iron rule as it's possible for an individual to be a self-employed professional gambler, and his gambling income to be subject to income tax.

    I think that's a rumour put about by HMRC..
    Bookworm55 wrote: »
    I thought companies weren't restricted in their activities by their memorandum/articles since the CA2006 came into effect?

    Only if they were incorporated since the effective date or if they have since changed their existing mem and arts to be unrestricted.
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  • slackdaslackda Trusted Regular Registered Posts: 460
    Thanks guys
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