This blog will help you understand how the Set For Life game from the UK National Lottery works. If you're new to the idea of lotteries, or haven’t played before, this post explains what the game is, how the prizes may be paid, and answers some common questions.
We’ll also cover whether the prize is taxable, what happens if you want a mortgage after winning, and what your options are if a winner passes away. Everything is written clearly, with no jargon, so you don’t need to have played a lottery or any other betting game before. The information shared here is based on the rules set by The National Lottery, which is operated by Allwyn UK (formerly Camelot) under a licence from the UK Gambling Commission (UKGC).
It’s important to know that Set For Life is a game of chance, meaning outcomes are random, and no result is ever guaranteed. The chances of winning the top prize are around 1 in 15.3 million, based on the draw mechanics.
Is Set For Life Tax Free?
Yes, if you win a prize in the Set For Life lottery, the amount you receive is not subject to UK income tax. This includes the top prize of £10,000 paid every month for 30 years, as well as other potential prize tiers.
That means if you win, you’ll receive the full amount stated by the lottery, without anything deducted for tax purposes.
However, if you decide to put the money into a savings account or investment, any interest or earnings made on those funds may be subject to tax, depending on your personal financial situation. In these cases, it may be helpful to speak to a financial adviser who can give you guidance that suits your circumstances.
Set For Life is a UK-based lottery game, so this tax-free status only applies under UK tax laws. If you're classed as a tax resident elsewhere, your local tax rules may be different.
Can You Get a Mortgage If You Win Set For Life?
It’s possible, but it depends on the lender and your personal situation. To apply for a mortgage in the UK, lenders usually check whether you can keep up with monthly repayments. They assess this based on your income, expenses, credit history, and other factors.
If you win Set For Life, the regular monthly payments could count as a form of income. This might be taken into account by some mortgage providers, especially if you can show evidence of the prize and how long the payments are expected to continue.
However, not all lenders treat lottery winnings in the same way as employment or pension income. Some might ask for extra documentation. Others may not accept it at all.
If you’re thinking about applying for a mortgage after a potential lottery win, it can help to speak with a mortgage broker who understands how lenders view different income sources. They can give you tailored advice and help you find lenders who may consider your situation.
Can You Take Set For Life As a Lump Sum?
No, the Set For Life top prize cannot usually be taken as a one-time payment. The main prize is structured to be paid in fixed monthly instalments over 30 years – that’s 360 payments of £10,000 each, totalling £3.6 million across the full term.
This format is different to other lottery games that might offer a single lump sum. Set For Life is specifically designed to provide a steady income over time, rather than a large one-off amount.
There are rare exceptions, which are covered in the game’s rules. For example, if the total number of winners in a particular prize tier causes the total prize fund to exceed a set limit (known as a prize cap), the operator may choose to adjust the payment structure. This could potentially include offering lump sums instead of instalments. However, such cases are not common and are decided at the operator’s discretion.
Is Set For Life Transferable on Death?
If someone wins Set For Life and passes away before receiving all of their remaining payments, the rest of the prize does not continue as monthly payments to their family. Instead, the value of the outstanding prize is calculated and paid as a lump sum to the winner’s estate.
The estate is the legal term used for all of a person’s assets (such as money and property) after they die. This payment would then be distributed according to the person’s will, or according to the laws of inheritance, if there is no will.
The National Lottery has clear rules about how this works. If a winner dies before receiving all of their Set For Life payments, the remaining prize is not simply added up and paid in full. Instead, the National Lottery works out what those future payments are worth in today’s money. This amount, called the "present value," may then be paid to the winner’s estate as a lump sum.
If this applies to you or someone you know, it may be helpful to speak with a solicitor or financial adviser who understands probate and estate planning.
If you're thinking about playing Set For Life, or any lottery game, it's important to remember that these games are based entirely on chance. There is no way to influence the outcome, and there is no strategy that guarantees a win.
The odds of winning the top prize in Set For Life are 1 in 15,339,390, and the overall odds of winning any prize are around 1 in 12.4. Because of this, it's recommended to only spend what you can afford to lose, and not to treat lottery play as a way to make money.
You can find tools and support through organisations such as BeGambleAware.org or GamCare if you’d like help staying in control of your play.
*All values (Bet Levels, Maximum Wins etc.) mentioned in relation to these games are subject to change at any time. Game features mentioned may not be available in some jurisdictions.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.