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Usain Bolt and the taxman

What do you think about this? Usain Bolt isn't running in the UK as it would cost him more in tax than he can earn in prize money.
Apparently as well as paying tax on his prize money he would also be forced to pay a proportion of his world wide earnings.

Apparently this stopped Wembley getting the 2011 champions league final and they only got it for 2012 as they put in an exclusion to this tax.

Could this stop top sportsmen/women competing in the UK?

http://www.guardian.co.uk/sport/2010...t-london-taxes

Re: Usain Bolt and the taxman

Hopefully... "UK A SPORT FREE ZONE!"

...except for enthusiatic amateurs

Re: Usain Bolt and the taxman

It's just another indication of how money has ruined sport.

Re: Usain Bolt and the taxman

Quote:

Originally Posted by Taf (Post 35055578)

Hopefully... "UK A SPORT FREE ZONE!"

...except for enthusiatic amateurs

isn't that the case though ,olympic athletes are technically supposed to be amatures therefore technically don't get a wage just sponsorship,at least that's how i thought it used to be

Re: Usain Bolt and the taxman

Frankly, this sounds like porkies to me. It seems highly unlikely to me that the British tax man can (or will) tax overseas earnings from someone who is not resident in the UK and is liable for tax on those earnings elsewhere.

Apart from this story on Bolt there's preciously little to be found on this on the web.

Edit: apparently not.

Quote:

BRITAIN’S sporting calendar is in danger of being decimated by a new threat: a harsh tax regime blowing in from the government.

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.

So they will determine what percentage of events a person participates in took place in the UK and tax that percentage of sponsorship deals. I wonder if Jamaica and the UK have double taxation relief deals.

http://www.timesonline.co.uk/tol/mon...cle6991066.ece

Re: Usain Bolt and the taxman

Link

Quote:

"I will see what I can do. Three weeks doesn't give us a whole lot of time to organise a tax concession," the sports minister stated.
Athletes competing in the UK are liable for a 50% tax rate on their appearance fee as well as a proportion of their total worldwide earnings - which for Bolt, who earns millions from endorsements, could be hugely costly.

Link

Quote:

Athletes competing in the UK are liable for a 50% tax rate on their appearance fee as well as a proportion of their total worldwide earnings - which for Bolt, who earns millions from endorsements, could be hugely costly.
HM Revenue & Customs won a case in 2006 brought by tennis star Andre Agassi. It successfully argued that as well as the prize money he accrued, a proportion of Agassi's worldwide sponsorship income was also earned during his time in the UK and was therefore taxable.
HMRC bases its tax charge on the number of UK events athletes compete in. For example, if Bolt were to take part in 10 meetings worldwide, with one in the UK, the HMRC could tax him on one-10th of his worldwide earnings.
The UK's tax laws have proved a handicap to the country's chances of hosting events. Uefa admitted in 2008 that Wembley missed out on the 2010 Champions League final for that very reason.

The Government has since agreed to waive the rule so London can host the 2011 final, and competitors in the 2012 Olympics are also exempt.
Golfer Sergio Garcia has admitted in the past that he limits his appearances in the UK because of tax laws.

Wembley loses 2010 final over tax

Re: Usain Bolt and the taxman

They must have changed their mind though because the 2011 Champions League final will be at Wembley...

Re: Usain Bolt and the taxman

Any tax concession in relation to this issue, is not yet in place.

Quote:

"I will see what I can do. Three weeks doesn't give us a whole lot of time to organise a tax concession," the sports minister stated.

I should imagine that the money in question is already liable in full for tax somewhere. If other countries followed this tax rule, it would be possible that people would be taxed at over 100% of that income. They would be making a loss from earning it.

Re: Usain Bolt and the taxman

Quote:

Originally Posted by Damien (Post 35055609)

They must have changed their mind though because the 2011 Champions League final will be at Wembley...

Ah yes your right, but only after the government bought in a tax exemption.

Quote:

Wembley has been chosen to host the 2011 Champions League final.

European governing body Uefa selected the stadium ahead of Munich's Allianz Arena and Berlin's Olympiastadion.

The news had been expected after Uefa delayed its decision to allow the UK Government to bring in a tax exemption for players appearing in the final.

http://news.bbc.co.uk/sport1/hi/foot...pe/7858932.stm