I was amazed to find out that a friend of mine is selling his
house using a raffle. offering the property as the first prize!
I'm concerned about whether this is legal and wha the risks
are. Can you advise?
It became fashionable to sell your property by raffle in the
height of the property boom, but now there has been a dip in
property prices, there is a chance that your friend may not sell
many tickets. I understand more than 100,000 tickets need to be
sold to cover costs. Most importantly the terms and conditions for
the raffle have to include clauses making provision to award cash,
less expenses and charity donationtions, if not enough tickets are
sold to achieve the target.
Raffles fall withing the domain of the Gambling Commission and
the HMRC, so I hope your friend will follow the rules to the letter
or he could end up with a fine of up to £5,000 and a 51 week
prison sentence. HMRC can levy a 12 per cent lottery duty on the
ticket sales of unlawful lotteries.
