Devils Advocate. 0 Posted July 25, 2009 If a club makes a profit on the sale of a player, is this taxable and if so at what rate? Share this post Link to post Share on other sites
Appletonandy 0 Posted July 25, 2009 Profits from player transfers are shown in the company''s profit and loss account, which forms the basis of the corporation tax computation. Taxable profits of less than £300k per annum are currently taxed at 21%, profits over £1.5m are taxed at 28% and profits in between £300k and £1.5m are taxed at a marginal rate, calculated using a fraction of 7/400.Hope this helps. Share this post Link to post Share on other sites
Canary Man of Kent 0 Posted July 25, 2009 Potentially although that would be as part of the company''s corporation tax calculation. There would be no immediate tax sufferred. Based on the company''s accounting profit or loss a company then has to make various tax adjustments and then suffers tax on that at a rate of 28% as a rule, potentially less depending on the size of the business.A player shouldn''t be a chargeable gains asset (although there could be specific rules on their contracts of which I''m unaware) in which case the amount that is taxed would be the amount which goes through the p&l account. I''m jot sure how the p&l element would be calculated as I imagine accounting for football clubs must be quite quirky! I hope that helps. In short; no vat, no stamp tax, corporation tax based on profit recognised in p&l (subject to specific computational provisions) as we''re loss making the profit on player sales shouldn''t result in a tax charge. Share this post Link to post Share on other sites
Canary Man of Kent 0 Posted July 25, 2009 As I''m sure you''re aware andy, those bands have to be split by the number of associates the company has, so the club would almost certainly pay at a rate of 28% at a lot lower proft chargeable to corporation tax than £1.5m Share this post Link to post Share on other sites
Appletonandy 0 Posted July 25, 2009 Yes Simon, you are of course completely correct. I haven''t a clue as to how many associates the company has so I thought I would just quote the CT basics. Has any one got a set of accounts to hand which show the last CT charge? Share this post Link to post Share on other sites
whoareyou? 0 Posted July 25, 2009 Corpn tax was paid at 30% in the last accounts as that was the main rate at the time! Players contracts and transfer fees are treated as intangible fixed assets! Share this post Link to post Share on other sites
