Anyone who’s played the lottery before must have heard about the UK’s annuity lottery called Set For Life. It’s where top prize winners receive their winnings as instalments instead of a lump sum payout. The top prize is £10,000 a month for 30 years, a generous prize that explains why so many play this lottery.
If you’ve been wondering whether Set For Life is tax-free, you’ve come to the right place. We’ve got answers to that and more questions about getting a mortgage if you win in our Wizard Slots blog post below.
Is Set For Life Tax Free?
Yes, all the Set For Life prizes are tax-free. So, you receive the advertised monthly payments in full within the given period. However, if you choose to invest the money, it might accrue interest and therefore be liable for taxation.
Can You Get a Mortgage If You Win Set For Life?
Lenders need you to meet certain criteria in order to receive a loan. One of them is whether you can afford repayments.
If you win any of the top two Set For Life prizes, you receive a fixed instalment every month for a given period. So, it could potentially help to repay a mortgage in the long run.
Can You Take Set For Life As a Lump Sum?
No. The rules for Set For Life require any winners to receive their winnings in fixed amounts over the stated period. There are two exceptions.
If the winner dies before all the payments can be completed, then a lump sum payment is made to their next of kin.
Secondly, if several winners appear in a given category, the National Lottery might decide to introduce a prize cap. Therefore, winners have the option to receive their winnings in a lump sum or annuity payments.
Is Set For Life Transferrable on Death?
If a Set For Life winner passes on before their annuity payments are all made, the remaining payments transfer to their estate in a lump sum.
*All values (Bet Levels, Maximum Wins, etc.) mentioned in relation to this game are subject to change at any time.
