Taxation: Foreign Footballers
Lord Faulkner of Worcester: My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as vice-chairman of the Cardiff Millennium Stadium. The Question was as follows:
To ask Her Majesty's Government what are the arrangements for the tax treatment of foreign footballers playing in final matches in European competitions at stadiums within the United Kingdom; and what are the likely consequences of these arrangements for winning the rights to stage finals in the United Kingdom.
Lord Davies of Oldham:
My Lords, the Government do not withhold tax from payments made by non-UK football clubs to their employees when they play for their club in team competitions in the United Kingdom. Non-resident footballers may be liable to UK tax on payments relating to games played in the UK and would have to complete a tax return for any UK tax liabilities arising. The legislation and its implementation have remained unchanged for many years.
My Lords, I thank my noble friend for that Answer. He will have seen press reports at the weekend that according to UEFA the Football Association’s bid to stage the 2010 Champions League final at Wembley was dismissed for the reason that Her Majesty's Government, unlike the authorities in Germany and Spain, could not give an undertaking that the players taking part would not be subject to British taxation. As my noble friend knows, UEFA takes the view that they should be taxed only in their country of domicile. As the Government’s position may have been misunderstood, would Ministers allow my noble friend Lord Triesman to get back in touch with Mr Platini and make it clear that we are anxious to see the 2011 Champions League final at Wembley and indeed the 2012 final at Cardiff? Will he ensure that no taxation issues stand in the way of that or of our staging other international events, such as the ICC’s World Twenty 20 Cricket Cup in 2009?
© Lords Hansard 2 April 2008