The autumn statement has revealed that following the consultation announced at Summer Budget 2015, the government will legislate to simplify the tax treatment of income from sporting testimonials
From 6 April 2017, all income from sporting testimonials and benefit matches for employed sportspersons will be liable to income tax. In addition, an exemption of up to £50,000 will be available for employed sportspersons with income from sporting testimonials that are not contractual or customary.
This legislation will apply where the sporting testimonial is granted or awarded on or after 25 November 2015, and only to events that take place after 5 April 2017. Separate legislation will be introduced before 6 April 2017 for the National Insurance treatment of this income which will follow the income tax treatment.
