Bye bye Wimbledon. Bye bye Word Cup 2018. Bye bye UK sport
Courtesy of Toocan in the BN66 thread:
I do not like sport. It does not interest me. Yet even I can see this is just national self-destruction.
Originally posted by Toocan
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Taxman scares off top sport stars
New rules threaten to drive away some of the biggest overseas names from showcase events in Britain
Some of the world’s top sports stars are turning their backs on tournaments in Britain because of “draconian” taxes now being imposed on their worldwide sponsorship deals.
Big events could lose some of their main attractions because of a new offensive by HM Revenue & Customs (HMRC) to impose levies on money from endorsements. It confirmed this weekend that it is also targeting sponsors’ performance-related bonuses.
For example, if a sports star plays in two tournaments or races in two marathons a year, and one of those events is in Britain, they could be charged 50% tax on half their total annual sponsorship money.
“In previous years the tax charge would be based on how many days of the year the sportsman was in the UK. So if they played in a two-week tournament, one 26th of their endorsement income would be liable for UK tax.
“Now, HMRC bases it on what proportion of your competition events are in the UK. So, if you only play five tournaments a year and one of them is here, one fifth of your endorsement earnings would be liable for tax.”
The HMRC said the tax was always levied on a “just and reasonable” basis.
Wembley was ruled out of holding this year’s Champions League final after failing to provide assurances that players taking part would not be taxed on their salaries. “Yes, the reason was the taxes,” said Michel Platini, the Uefa president. Instead the final went to Real Madrid’s Bernabeu stadium.
The threat is such that Fifa, football’s ruling body, has already asked for an exemption for the 2018 World Cup if it is held in England.
New rules threaten to drive away some of the biggest overseas names from showcase events in Britain
Some of the world’s top sports stars are turning their backs on tournaments in Britain because of “draconian” taxes now being imposed on their worldwide sponsorship deals.
Big events could lose some of their main attractions because of a new offensive by HM Revenue & Customs (HMRC) to impose levies on money from endorsements. It confirmed this weekend that it is also targeting sponsors’ performance-related bonuses.
For example, if a sports star plays in two tournaments or races in two marathons a year, and one of those events is in Britain, they could be charged 50% tax on half their total annual sponsorship money.
“In previous years the tax charge would be based on how many days of the year the sportsman was in the UK. So if they played in a two-week tournament, one 26th of their endorsement income would be liable for UK tax.
“Now, HMRC bases it on what proportion of your competition events are in the UK. So, if you only play five tournaments a year and one of them is here, one fifth of your endorsement earnings would be liable for tax.”
The HMRC said the tax was always levied on a “just and reasonable” basis.
Wembley was ruled out of holding this year’s Champions League final after failing to provide assurances that players taking part would not be taxed on their salaries. “Yes, the reason was the taxes,” said Michel Platini, the Uefa president. Instead the final went to Real Madrid’s Bernabeu stadium.
The threat is such that Fifa, football’s ruling body, has already asked for an exemption for the 2018 World Cup if it is held in England.
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