If you won the lottery...

If you die it's a different matter as the money is deemed to be part of your estate so your beneficiaries are liable to inheritance tax. If you die without any beneficiaries the government takes the lot.

You could gift it away before you die as long as you don't pop your clogs within seven years and as long as you don't give too much in one go because the money given away is still counted as part of your estate. There are legal ways around this of course, and that involves employing an accountant.

It's a tricky business winning more money than you know what to do with.

You are liable to income tax on most investment income, though, and, if you invest in property, on any letting income, and capital gains tax upon disposal. Given the amount of investment and/or letting income on such a win, this would be at the higher rate of income tax, so, although the win itself is tax free, the consequences are not.

As regards gifting, well, the annual allowance is so small (it was £7,000. Not sure now, as this is not my field) as to pale into comparison with the amount won, so, as you suggest, detailed tax planning for inheritance tax from a specialist would be absolutely vital to invest in trusts and such things to legally avoid the tax.

Buy a life time family VIP season ticket to Elland Road

Visit all the giant wave sights around the world

Travel all the time

Buy an estate in Torridon, Scotland- preferrably with a moat ;-)

Choose 10 random families and change their lives forever

adopt 10 orphan's added to my three - give them a stepping stone to the mindf&%k of the journey called life

Blow a 2 million on a four day progfest in UK - Money to be given to the bands, especially Caravan and Camel who always seemed to get shafted by their record companies

Try buy a date with Clare Forlani

 

Personally, I'd spend my time touring record fairs and collecting old records in mint condition (easier online, but lots more fun in person) and with most of the money I'd buy land for myself and friends and family, plus more land elsewhere (it'd be amazing to own a mountain, for example)

Thanks Stewart. I tried to avoid the obvious maudlin topics of giving money to charity (which I definitely would do) and to family (which I definitely would do) and friends (meh... perhaps not) and concentrate on using the money selfishly on things that interest me personally. It also purposely ignores the obvious reality that my wife would have spent this cash several times over before we even saw the cheque from Camelot (or whoever runs it now-a-days).

Mountains are not my thing... an island however... 

Of course the interest, even being conservative, is going to clock-up something like £250,000 per month and most of us could do all we ever dreamed of with just that monthly income. Imagine the fun you could have at record fayres with just that "piddling" amount each month. Taking interest into account the pile would decrease even slower and I'd expect that some of my entrepreneurial ventures would also provide income even if most of them were a constant drain - but as you imply spending a silly amount of money is not as easy as you'd expect.