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You do not pay a tax for winnings gained from Betfair, but you will have to pay a commission fee of 5% of the profit amount on markets you have won money on. This amount is deducted before you are paid, so you don’t have to worry about paying it yourself. The commission rate is reduced if you are a heavy user and place very many bets on the Betfair exchange. At the time of writing, and for as long as I can remember, the normal commission rate on the Betfair Exchange is 5% of all winnings on each market you bet.