Wimbledon Champions Jannik Sinner and Linda Noskova Could Face £1.6 Million Tax Bill from HMRC

Wimbledon champions Jannik Sinner and Linda Noskova are poised to encounter substantial tax liabilities, with each player having earned £3.6 million at the All England Club. Sinner successfully defended his title with a four-set triumph over French Open champion Alexander Zverev on Sunday, while Noskova secured her victory against fellow Czech Karolina Muchova in three sets on Saturday. Both athletes benefitted from the Grand Slam’s policy of equal prize money for singles titles, but they now face considerable deductions from HM Revenue and Customs (HMRC) due to the complex tax regulations that apply to non-resident sportspeople.

Tax Implications for Non-Residents

Craig Hughes, a partner at Menzies LLP, explained that if both players are tax residents in Monaco and the Czech Republic, the UK tax treatment of their Wimbledon earnings would largely mirror that of UK residents. He noted, “Initially, tax may be withheld at source at a rate of 20 per cent, which translates to £720,000 on prize money of £3.6 million. However, this withholding acts as a payment on account of the player’s ultimate UK tax liability.” Hughes elaborated that if the entire £3.6 million is deemed taxable in the UK, and assuming there are no deductible expenses or additional UK-related endorsement incomes, the final tax liability could exceed £1.6 million.

After accounting for this tax, the players would be left with approximately £2 million before factoring in agent commissions, coaching fees, travel costs, and other professional expenses. Furthermore, overseas athletes like Sinner and Noskova may also face additional tax obligations in their respective home countries, while British players are required to pay National Insurance contributions.

The Strategy of Avoiding Pre-Tournament Events

Many elite players opt to forgo the pre-tournament grass court events held in the UK, such as the HSBC Championships at Queen’s Club and tournaments in Eastbourne and Edgbaston, in an effort to minimise the duration of their income-generating activities on British soil. Instead, a number of them prefer to remain on the continent before travelling to the UK for the two-week Championship fortnight.

Hughes commented on the rationale behind the UK’s approach to taxing earnings from prominent sporting events, stating, “It makes sense for the UK to seek to tax income generated from high-profile performances held here. However, the issue of proportionality is complex.” He further elaborated, “While taxing Wimbledon prize money itself is relatively straightforward, allocating worldwide endorsement income and associated expenses across international tournament days can be administratively challenging, particularly for athletes who may only be present in the UK for a limited period each year.”

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