HMRC Tax Rule a Deterrent for European Tour

Sarah Woodman, Global events journalist
August 11, 2010 /

The European Tour is quite disappointed with the UK tax rules and has begun discussion with HM Revenue & Customs. The UK tax rules is discouraging top seeded golfers from taking part in the celebrated Ryder Club due in October, 2010. The Ryders Cup does not carry any money as prize but participants earn money on sponsorship and endorsement.

The HMRC rules say that foreign stars winning money from UK events in which they participate, would have to give tax. They will also be taxed for income connected to UK performances such as sponsorship and endorsement.

This has resulted in the refusal to take part in UK event namely Crystal Place meeting by the fastest sprinter of the world, Usain Bolt of Jamaica. This has also resulted in Wembley losing out on hosting the Champions League this year.

Mitchell Platts, Director of the European tour for public relation and corporate affairs said that these rule are a deterrent for prominent sports persons from participating in events taking place in UK. He further added that events are played and best players are invited to participate so that the spectators are fully entertained and thrilled. This tax rules are putting hurdles to the efforts.

On the other hand, HMRC defended their stand stating that USA, Australia and South Africa have similar tax rules and provision is in place for more than 100 countries where foreign residents can claim tax relief under the Double Taxation Agreements. The said tax rule asks for tax to be paid for the money that sports persons earn in the UK. It said that it is similar to someone coming to work in the UK and pays tax against their income from such employment.

Platts would continue discussions with the HMRC in this regard to mollify somehow.


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