Sports tax yields £68m a year

by Accountancy Age Staff

More from this author

25 Nov 2011

  • Comments

THE TAX on overseas sports and entertainment stars yielded £68m in 2009/10, a freedom of information request has shown.

Bloomberg obtained figures that showed HM Revenue & Customs collected £56m in 2008/09 from the tax on endorsement income, appearance fees and revenue from overseas stars performing in the UK. This was down from £58m in 2007/08.

The likes of Jamaican sprinter Usain Bolt and Spanish tennis player Rafael Nadal (pictured) have spoken out against the UK tax system. Bolt has avoided performing in the UK for tax reasons, while Nadal told reporters he would not play at the pre-Wimbledon Queen's tournament because he would "lose money".

HM Revenue & Customs calculates tax owed by sports and entertainment stars based on the number of events they compete in as a proportion of the total number of events worldwide. Therefore, if a sportsperson competes in two events in a year, one of which is in the UK, then they would pay tax on half of their worldwide endorsements.

Sean Bannister, tax manager at Lass Salt Garvin, said: "The punitive taxation of overseas sports stars appearing in events in the UK means that those athletes at the very pinnacle of their profession are in some cases actively seeking to avoid the satellite events held before and following the major tournaments.

"Not only does this make the UK uncompetitive in regard to the hosting of such events, it also means the fans suffer."

Bannister said the fact that the Olympics and the 2011 Champions League final were both given partial exemptions highlights the unfairness, adding that HMRC should review the system to protect events such as the British Open and Wimbledon.


Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send


Financial Planner

The Ministry of Defence Surgeon General’s (SG) Finance Department, Lichfield, Staffordshire, Permanent, Full Time, £ £30,008




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.