EIM68400 | Tax treatment of professional cricketers: earnings: talent money and benefit matches

The remuneration of professional cricketers and other professional players, other than footballers (see EIM64100 onwards), who serve under contracts of employment may consist of:

• wages and, in some cases, talent money and

• proceeds of a benefit match or sporting testimonial

Agreements between players and clubs are normally made yearly. In cases of difficulty you should ask to see the relevant documents. See also Reed v Seymour (11TC625).

The tax treatment of income from sporting testimonials changed with effect from 6 April 2017.

For periods ending on or before 5 April 2017, the following amounts are chargeable to tax as employment income:

• proceeds of a benefit match arranged for the benefit of a player under the terms of his or her agreement, usually at the expiration of a number of years’ service and subject to a minimum payment guaranteed by a club (see, however, (a) below).

For periods ending on or before 5 April 2017, the following amounts are not chargeable to tax as employment income:

1. proceeds of a benefit match or sporting testimonial received by a player not under the terms of his or her agreement but on compassionate grounds, for example, as compensation for permanent injuries

2. proceeds of a public subscription or of a collection made at a benefit match unless it is clear that the player has an entitlement or expectancy so that such collections form part of the terms or conditions of his or her employment. (See EIM00630 onwards.)

See EIM64121 for details of the changes to the tax treatment of income from sporting testimonials which have effect from 6 April 2017.