Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers' forum: Global sportsman

26 April 2016
Issue: 4547 / Categories: Forum & Feedback , Admin

Apportioning tax on an international sportsman’s earnings and sponsorship.

A UK resident and domiciled professional sportsman has a growing reputation. In the past couple of years he has competed around the world and has won considerable sums. The prize money has suffered withholding tax between 0% and 30% which we have claimed against his UK marginal tax liability of 45%.

Our client now has the opportunity to compete regularly in the US although he will continue to be based in the UK. The US tournaments will form about one-third of all events. In 2015 he won prize money there a couple of times and suffered 30% federal withholding tax and local state taxes at differing rates. He also has a limited company which receives endorsement income and two of his sponsors are US-based companies. These have started to deduct withholding tax from sponsorship payments although the basis of this is unclear. We presume that the...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon