Jannik Sinner and Iga Swiatek are subject to over £1 million in UK tax liabilities due to their Wimbledon prize winnings. As non-UK residents, they are taxed on UK-related earnings, specifically the £3 million prize money, with withholding tax at a flat rate of 20%. They also face a top rate of 45% tax on winnings after deducting business expenses. In addition to prize money, they will be taxed on some image rights income deemed UK-sourced. The UK’s tax system is viewed as punitive compared to other countries, deterring some athletes from participating in UK events.
Although neither the Italian player, Jannik Sinner or Polish player, Iga Swiatek, are classed as UK tax resident, they will be taxed on their UK-related earnings, including their £3,000,000 Wimbledon prize winnings, on which they face a hefty tax liability of over £1 million.
Both will also be taxable on an element of their wider image rights earnings, as some of this image right income will be regarded by HMRC as UK-sourced.
While international tax law and UK tax regulations do provide HMRC with a legal basis for taxing these stars in the above manner, many other countries, such as Germany, provide much more favourable tax regimes for travelling sportspeople.
The relatively punitive tax system in the UK for sportspeople has often been seen as a negative, and it is believed that some sports stars, such as Usain Bolt and Rafael Nadal, have historically refused to participate in certain UK sporting events in the past because of the tax implications that they faced.
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