In Parliament

Footballers testimonials

It seems that the outmoded and unnecessary system whereby certain footballers, some of whom must now rank among the highest paid individuals in the country, are given the proceeds from a testimonial match tax free, is here to stay. Dawn Primarolo explained that if the proceeds from such a match are connected with the termination of a footballer's employment, they are taxable if they exceed £30,000. If a footballer is entitled to a testimonial after a specified time or under an agreement with the club, then the proceeds are taxable in full as income from employment.

However, if no such entitlement exists, and the testimonial is organised by a testimonial committee on behalf of the individual, rather than by the employer, the proceeds are deemed not to derive from the employment, but from individuals 'marking their esteem for the individual's personal qualities or general contributions to the game'. As the gifts are 'of a personal nature', they are not taxable.

Ms Primarolo added that the Government has no plans to change this tax treatment.

(Source: Hansard, 31 January 2002, Vol 379, No 93, col 523W.)

Issue: 3845 / Categories: