Best reply by MarcThyme:
Capital gains Tax isn’t due on ANY of it…..it is INCOME, so you owe Income Tax on all of it (whoever you “give it away to”), and if they get above a certain threshold, THEY owe Income taxes on it, too.
You can generally opt to have a jackpot paid as a “lump sum” (which is taxable as income for the tax year you take it) or as an annuity, or ‘annual payment’ for 20 years, in which case the money counts as income for each of those years…
Read the original question here
What are the tax implications of winning the lottery. Is capital gains tax payable on any given away?
