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Taxation of testimonial income will be subject to a £100,000 exemption
Income from sporting testimonials and benefits matches will be subject to income tax and National Insurance, as confirmed in last year’s autumn statement.
After consultation on the draft legislation, the one-off exemption, previously announced as £50,000, has been increased to £100,000. This applies from 6 April 2017 to an employed sportsperson on income from testimonials that are non-contractual or non-customary. It will apply only to a single testimonial, which may consist of one or more events in a year.
Separate corporation tax provisions to take such income out of charge if appropriate will also be introduced in Finance Bill 2016.
Further legislation will be introduced before 6 April 2017 to confirm the National Insurance treatment of this income.
The measure will cover events held on or after 6 April 2017 when the testimonial has been awarded on or after 25 November 2015.
