Treasury needs to remove sports tax hurdles

by Julian Hedley, Saffery Champness

More from this author

14 Feb 2013

  • Comments

THE TAX EXEMPTION for the 2013 London Grand Prix athletics event is yet further evidence of the Treasury's lack of foresight with regards to the benefits that major sporting events bring to the UK.

We have calculated that the annual income tax collected on endorsement income from non-resident sportspeople is between £7m and £8m per annum, a tiny amount compared to the contribution sport makes to the UK Exchequer.

In economic terms, the taxation foregone by removing the obligation to pay tax on worldwide endorsement income is vastly outweighed by the economic benefit from increased ticket sales, and associated revenues associated with huge crowds attending such an event.

Whilst any exemptions to encourage events in the UK are welcome, it is clear that the rules should be changed.

By abolishing the collection of income tax on a proportion of global endorsement income, the UK would fall into line with almost all other countries. Sportspeople would then know that they could compete in the UK without the fear of paying more in UK income tax than they would earn, which has been the case in the past for individuals like Usain Bolt.

That is why we at Saffery Champness call on the government to stop with piecemeal approach and remove the UK rules on the taxation of endorsement income, which would mean the Treasury would not have to issue tax exemptions to secure the participation of major global stars in UK events.

Julian Hedley is head of the Sports and Entertainment Group at Saffery Champness

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

Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




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.