Lottery Syndicate Agreement
If you’re planning to set up a lottery syndicate – a group of people who contribute towards the purchase of lottery tickets and agree to share the money in the event of a win – it’s vital that you have a syndicate agreement in place to ensure that everyone gets their fair share.
A lottery syndicate agreement is important as it ensures that there is no misunderstanding about how winnings will be distributed, who is responsible for buying the tickets and taking care of the money, and what happens where someone fails to make their contribution to the fund.
Even in cases where you have absolute trust in everyone involved, there are also tax considerations; lottery wins are exempt from tax, but in cases where there is no clear syndicate agreement, HMRC may argue that the person who bought the ticket is the winner, whilst the other members of the syndicate are receiving a gift from that person and are liable to pay tax on it.
This free lottery syndicate agreement can be used to set out the terms for a lottery syndicate which is ongoing, or which is set up specifically for a single prize draw. After you have downloaded it and filled out the relevant details, all members of the syndicate should sign the agreement, and each should be provided with a copy.
If you need further legal guidance with setting up a lottery syndicate, DAS Instant Law Line - our unlimited telephone legal advice service - could help. For only £7.99 per month, you could be getting legal advice in just 5 minutes.