Accountant expecting 'outcry' over football tax exemption

People in senior banking jobs may be very interested to hear about a "wave of demands" from international sports stars looking for exemption from the 50 per cent tax rate.

The Financial Times is reporting on a Budget resolution that would mean football players taking part in 2011 UEFA Champions League, at Wembley Stadium, would be exempt from taxes on prize money, which would be in tens of millions of pounds.

Ronnie Ludwig of accountants Saffery Champness appreciated that the UK is looking to protect its right to the event but warned that the provision could provoke an "outcry".

He added: "Why should footballers appearing in the Champions League final be exempted from UK taxes while tennis players at Wimbledon or golfers at the British Open are not?"

A successful challenge may leave the Treasury answering uncomfortable questions on why sports stars may be exempt and not other professionals such as senior bankers.

Last year, in a tone eerily similar to warnings of a banking jobs exodus from London headhunters recently, former Liverpool footballer Xabi Alonso warned the increase in tax on top earners could drive footballers to other countries.

He moved back to Spain to ply his trade last summer.

Updated: 26 March 2010.
Categories: banking-and-financial-services, market-and-industry-news.