Ltd Company Gambling

slackda

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

deanshepherd

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.

Bookworm55

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?

deanshepherd

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.

slackda

Thanks guys