Footballer’s agent's fees are not deductible

The taxpayer was a professional footballer who transferred from Lokomotiv Moscow to Everton FC in 2016. He had appointed an agent to represent him. The taxpayer his agent and Everton entered into a tripartite contract under which the agent would represent both the taxpayer and the club in negotiations and would supply further services to the club while the taxpayer was employed by it. Under the contract Everton agreed to meet the taxpayer’s liability to pay fees to the agent under the representation contract. 

A dispute arose as to the deductibility of the payments made by Everton to the taxpayer’s agent from his employment income. It was agreed that they were employment income or a benefit of the taxpayer but he claimed a deduction under ITEPA 2003 s 336 (general rule for employment income deductions) or s 352 (deduction of entertainer’s agent’s fees). HMRC refused the...