Lottery Winnings

A Country Voice

Hi Guys,
Just wanted to check something with the experts.
Sorry if this has been done to death before.

Lets say somebody had a big win in the lottery, (I haven't, I'm banking on the Euro millions ).
If you won the jackpot on this Tuesday night, estimated to be 85 million euro, and put say 60 million of it on deposit with the states 3% interest investment scheme, I'm aware that you'd have to pay D.I.R.T. at 30%, but would you also have to pay income tax on the remaining 70% of your annual interest?

3% of 60,000,000 being 1,800,000, then 30% of 1,800,000 being 540,000 gone in D.I.R.T., then would the remaining 1,260,000 be tax free?

If so it would work out at 105,000 a month into the current account which would be nice I have to say

Thanks for the advice
ACV

nompere

DIRT satisfies your income tax liability, so your calculation is correct.

Deposit interest is exempt from USC.

If Revenue treat you as self-employed (and a lot of people with nothing other than investment income are treated as self-employed) then deposit interest is liable to PRSI. PRSI for the self-employed in 2012 is 4%. That's 4% of €1,800,000 in your enjoyable little fantasy - another €72,000.

A Country Voice

Thanks Nompere

I wasn't aware of the possible or probable PRSI liability, and wasn't sure of the income tax liability if any.

Sure we can all dream

ACV

seagullsontour

counting money when you haven't got it.....fool

Valetta

There is no D.I.R.T payable on state savings.

barney4001

I have been doing the daily million this past 3 months and not once has it or the plus draw in it been won there is 39 numbers in the draw ,now im beginning to think could be rigged even the second prizes in these draws have only been won 4 or 5 times,i do it every night same numbers

barney4001

barney4001 wrote: »

I have been doing the daily million this past 3 months and not once has it or the plus draw in it been won there is 39 numbers in the draw ,now im beginning to think could be rigged even the second prizes in these draws have only been won 4 or 5 times,i do it every night same numbers

STILL NO WINNER OF DAILY MILLION OR THE PLUS

A Country Voice

Valetta wrote: »

There is no D.I.R.T payable on state savings.

Hiya,
Would a person only be liable for prsi at 4% then on their income from the state savings?,

ie no dirt, and no usc? no income tax? no capital gains tax?

Thanks
ACV