European Tour slams UK tax rules 11/08/2010
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The European Tour has hit out at UK tax rules that could discourage some of the world’s top golfers from competing in the Ryder Cup in Wales this year.
Foreign sportsmen and women are taxed not just on their winnings from events in Britain but also the portion of other income that is connected to UK performance, including sponsorship and endorsements.
The rules led to sprinter Usain Bolt pulling out of this weekend's Crystal Palace athletics meeting and the tax situation is of particular concern to the Ryder Cup because the players receive no prize money.
Mitchell Platts, the European Tour’s director of public relations corporate affairs, said: “These tax rules are discouraging leading sportsmen and sportswomen from competing in Britain.
“Our aim is to attract the best players to provide the best entertainment for our audiences in the UK. This tax rule is seriously hampering our efforts.
“Discussions continue to take place with HMRC [Her Majesty’s Revenue and Customs] and these discussions include the Ryder Cup.”
HMRC has defended the rules, however, pointing out that the USA, Australia and South Africa operate similar systems and that foreign residents in more than 100 countries can claim tax relief under Double Taxation Agreements.
A spokesman added: “It is only right that where someone comes to work in the UK and receives an income, that tax is paid on that income, where it is due.
“Only the money the sports star earns in the UK that is connected to their performances in the UK is taxed.”
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