Winning a house through Omaze, Raffle House, BOTB, Elite Competitions or another UK prize competition does not automatically mean HMRC sends you a tax bill for the value of the property. The important questions are what the winner receives, who pays the purchase costs, and what happens if you live in, rent, sell or give away the house.
The short answer
No tax on the win*
For an ordinary entrant winning personally, a house prize is generally a windfall rather than pay from work or a trade.
Quick answer
For an ordinary person entering a prize competition privately, the house is not normally treated as taxable earnings simply because they won it. HMRC distinguishes ordinary windfall prizes from prizes connected with employment, a trade or profession.
The same broad principle can apply whether the property came from Omaze, Raffle House, BOTB, Elite Competitions or another genuine UK house competition. What can differ is the prize package: some operators pay Stamp Duty and legal fees, some offer a cash alternative, and some bundle the property with cash or other prizes.
There is also an important Capital Gains Tax rule for non-cash prizes: HMRC says that where a prize takes the form of an asset, the winner is treated as acquiring that asset at its market value when they receive it. That becomes important if you later sell the property.
Not just Omaze
The tax rules are broadly about the prize you receive, not the logo on the competition website. The important difference between operators is often the prize package and who pays the costs of taking ownership.
Omaze is the best-known UK house-prize operator and remains the main example on this page. Its current FAQs say the winner can live in, rent out or sell the property, and that Omaze covers the relevant property purchase tax and reasonable conveyancing costs.
Its current Grand Prize package also includes settling-in cash, so the winner may receive both a property and a separate cash prize.
Raffle House runs Dream Home draws and says its house prizes come with Stamp Duty and legal fees paid. Its own site also says the winner can live in the property, rent it out or sell it.
That makes the immediate ownership position similar to Omaze in some respects, but the exact property, extras and draw terms still need checking.
BOTB currently runs a monthly Dream Home competition. Its house pages can include a cash alternative, so a winner may have a genuine choice between taking the property and taking cash.
That choice matters for tax planning: owning a property brings Council Tax, possible rental income, future CGT and estate issues that a straight cash prize does not create in the same way.
Elite Competitions regularly runs house and Dream Home competitions, often with a cash alternative and sometimes with extra prizes such as vehicles, furniture or cash.
Some past Elite house packages have included Stamp Duty and fees, but the terms vary by competition. Check the specific prize description rather than assuming every house draw covers the same costs.
A prize house is still an asset you have won. What changes between Omaze, Raffle House, BOTB, Elite Competitions and smaller operators is whether Stamp Duty, legal fees, cash alternatives, furniture, cars or settling-in money are included.
Always read the terms for the exact draw before assuming the winner will receive the same package as another competition.
The whole picture
The easiest way to understand the tax is to separate winning the house from what you choose to do with it afterwards.
The ordinary consumer prize is a windfall, not salary or business income.
For Omaze winners, the current terms say Omaze covers the property-purchase tax and reasonable conveyancing costs.
Council Tax, insurance, utilities, maintenance and other running costs become yours.
Rental profit can be taxable and normal landlord rules apply.
Capital Gains Tax or Inheritance Tax can become relevant depending on what happens next.
Taking ownership
There is no one answer for every house competition because the operator's prize package matters. Omaze currently says it covers the relevant property purchase tax and reasonable conveyancing costs. Raffle House also says its Dream Home prizes include Stamp Duty and legal fees paid.
BOTB and Elite Competitions can offer different packages, including cash alternatives, and the costs included can vary by draw. A winner should therefore read the specific terms before assuming Stamp Duty or legal fees are covered.
Stamp Duty Land Tax in England and Northern Ireland is generally based on the “chargeable consideration” given for a property. HMRC says a property transfer with no chargeable consideration does not normally create SDLT.
Each Omaze house has its own official promotion rules. The property location also matters because Wales and Scotland use different property transaction taxes.
Current Omaze position: Omaze says house winners do not have to fund the relevant purchase tax or reasonable conveyancing cost themselves. Check the rules for the specific draw you entered because prize terms can change.
A rule many articles miss
For Capital Gains Tax, HMRC's guidance on windfalls is unusually helpful. It says that where a prize is an asset, it should be treated as acquired by the winner at its market value at the time of acquisition.
That means the amount you paid to enter the competition is not simply treated as the purchase price of a multi-million-pound house.
This shows the principle, not a final CGT calculation.
*Illustrative market value at acquisition. A later CGT calculation can also involve sale costs, improvements, private residence relief and other facts.
Example: if a competition house is worth £4 million when you acquire it and is later sold for £4.2 million, the starting point for the gain is not £4.2 million minus the price of your Omaze ticket. HMRC's windfall guidance points to the market value at acquisition as the starting value.
Our next dedicated page covers selling an Omaze house and Capital Gains Tax in detail.
Your choice after winning
Most major house competitions give the winner ownership of the property or a stated alternative. Once you own the house, the tax position changes depending on whether you live in it, keep it as a second home, rent it out, sell it or give it away.
If the Omaze house becomes your only or main home, normal homeownership costs apply. Private Residence Relief can also become important if you later sell it after genuinely using it as your main residence.
Renting the prize house
Yes, rental profit can be taxable. The house may have arrived as a prize, but rent paid by tenants is property income.
HMRC says you pay tax on rental profit after allowable expenses. The £1,000 property allowance may be available in some cases, and the reporting method depends on the level of income and profit.
That is £54,000 of gross annual rent before void periods and expenses. It does not mean £54,000 of tax: allowable running expenses are considered when working out taxable property profit.
Check the title deeds, planning position and local rules as well as tax. Omaze says private-property rentals are generally possible unless the deeds or local authority impose restrictions.
The special Furnished Holiday Lettings tax rules ended from April 2025. A winner considering holiday letting should use the current property-income rules rather than old FHL articles still appearing online.
Ongoing ownership costs
Yes, unless an exemption or discount applies. Winning the property does not remove normal Council Tax.
If you keep an English Omaze property as a furnished second home rather than your main residence, the local council can charge a second-home premium of up to 100% on top of the normal Council Tax bill. Local councils decide whether to use the premium.
Rules differ in Scotland, Wales and Northern Ireland, so check the council or authority where the house is located.
Why this matters: a large prize house can be mortgage-free and still cost a substantial amount each year to own. Council Tax is only one part of that alongside insurance, energy, maintenance, gardening, security and repairs.
Settling-in money
House competitions often add cash or other prizes. Omaze currently includes settling-in cash with its Grand Prize, while Elite Competitions has run house packages with cash, vehicles and furniture. BOTB and other operators may instead offer a cash alternative to the property.
For an ordinary consumer winner, cash that forms part of the prize is still part of the windfall rather than pay for work. But once that cash is in your bank account, interest it earns can be taxable under the normal savings rules.
See our interest and investment tax guide for the difference between tax-free prize capital and taxable income earned afterwards.
Long-term ownership
Once you own the house, it is part of your wealth. If you still own it when you die, its value can form part of your estate for Inheritance Tax.
A multi-million-pound house can also push the estate above the £2 million level where the residence nil-rate band starts to taper away.
If you give the property to a child or another family member during your lifetime, separate Inheritance Tax and Capital Gains Tax rules can apply.
Use the Inheritance Tax after a win guide for the £325,000 nil-rate band, residence allowance and £2 million taper.
Use the family gifts tax guide. Giving an asset can create CGT as well as the seven-year IHT issue.
At a glance
| What happens? | Main tax or cost | Simple answer |
|---|---|---|
| Win the Omaze house personally | Income Tax on the prize | Normally no for an ordinary consumer windfall. |
| Take ownership | Property purchase tax / legal fees | Omaze says it currently covers the purchase tax and reasonable conveyancing costs. |
| Live in it | Council Tax and running costs | Yes, normal ownership costs apply. |
| Rent it out | Income Tax on rental profit | Potentially yes. |
| Sell it later | Capital Gains Tax | Potentially on a later gain, subject to reliefs and your circumstances. |
| Give it to family | CGT + Inheritance Tax rules | Potentially both. |
| Still own it when you die | Inheritance Tax | It can form part of your estate. |
Common questions
For an ordinary person entering privately, a competition prize is normally a windfall rather than earnings from employment, trade or a profession. A prize connected to your work or business can be treated differently.
Omaze's current UK FAQ says it covers Stamp Duty irrespective of the winner's circumstances and also covers reasonable direct conveyancing costs. Check the rules for the specific draw you entered.
HMRC says that where a windfall prize is an asset, the winner is treated as acquiring it at its market value at the time of acquisition. That market value is important for a later CGT calculation.
Rental profit can be taxable under the normal property-income rules. Allowable expenses may reduce the taxable profit.
If the competition terms give you full ownership without a restriction on sale, you can normally sell the property. A later sale can have Capital Gains Tax implications, although the CGT starting value is not simply zero because the property was won.
Yes, normal Council Tax rules apply. In England, a council can charge a second-home premium of up to 100% if the property is furnished and is not anyone's main residence, subject to exceptions.
For an ordinary consumer winner, cash included as part of the prize is generally part of the windfall rather than employment or trading income. Interest earned after the cash is in your bank can be taxable.
Yes. Once you own the property, its value can form part of your estate if you still own it when you die.
The broad UK tax principles are the same: an ordinary prize is generally a windfall, a house is an asset, rent can be taxable, and a later gain can create CGT. What differs is the competition package — including Stamp Duty, legal fees, cash alternatives and other extras — so always check the specific draw terms.
Official sources
Tax rules on this page were checked against current HMRC and GOV.UK guidance. Prize details and examples were checked against current information published by Omaze, Raffle House, BOTB and Elite Competitions. Competition terms can change, so check the exact draw you entered.
