How much is a football transfer taxed?

[Doc Lynam]

Apologies if covered before but how much are domestic transfers taxed?

[Goldstone1976]

One for our resident expert? @El Presidente

Are there any specific taxes, or is it just CT?

[beorhthelm]

we dont tax money transfers, taxes are on profit or capital gains.

as a player registration (which is really what you are transferring, as players arent "owned" obvs) isnt a tangible asset (?) i dont believe it would have any CGT, so unless the football clubs turn a profit, no taxes will be incurred.

[Doc Lynam]

This quote is hidden because you are ignoring this member. Show Quote

we dont tax money transfers, taxes are on profit or capital gains.

as a player registration (which is really what you are transferring, as players arent "owned" obvs) isnt a tangible asset (?) i dont believe it would have any CGT, so unless the football clubs turn a profit, no taxes will be incurred.

So you can get taxed on your house but a 30m transfer for example is taxed nothing?

[Publius Ovidius]

This quote is hidden because you are ignoring this member. Show Quote

So you can get taxed on your house but a 30m transfer for example is taxed nothing?

It's the profit you make on the deal isn't it? Cost 20 mill sold 30 mill....profit 10 mill........but club registered in cayman islands or somewhere like that and doesn't pay anything

[beorhthelm]

This quote is hidden because you are ignoring this member. Show Quote

So you can get taxed on your house but a 30m transfer for example is taxed nothing?

you dont get taxed on your house sale, exempt from CGT. a second property will be liable to CGT if there is a capital gain. im not 100% positive about transfers just it seems likely its not counted for CGT. it would come up against Corporation tax if the club made a profit overall.

[Gazwag]

This quote is hidden because you are ignoring this member. Show Quote

So you can get taxed on your house but a 30m transfer for example is taxed nothing?

If your business is buying and selling houses you get taxed on your profit, buying and selling players is part of the business of a football club.

Selling your house is taxable but the gain is subject to private residence relief, if you live there.

[Shropshire Seagull]

I'm no expert .....

All limited companies must pay corporation tax on profits.
So if you buy a player for £1m and sell for £2m there is a £1m gain

However, if treated as an asset these are accounted for quite differently.
Normally an asset is depreciated over a period of time - example: IT kit is assumed to have e.g. a 4 year "life" so a quarter of it's value is taken in the accounts as a "cost" aka depreciation charge.
With football players, their "asset life" and value are way more volatile so I have no idea how they are accounted for.

[Bigtomfu]

This quote is hidden because you are ignoring this member. Show Quote

I'm no expert .....

All limited companies must pay corporation tax on profits.
So if you buy a player for £1m and sell for £2m there is a £1m gain

However, if treated as an asset these are accounted for quite differently.
Normally an asset is depreciated over a period of time - example: IT kit is assumed to have e.g. a 4 year "life" so a quarter of it's value is taken in the accounts as a "cost" aka depreciation charge.
With football players, their "asset life" and value are way more volatile so I have no idea how they are accounted for.

I think it's the value of the transfer plus the player's contract amortised over the length of the contract but not entirely sure.

[Jesus Gul]

Isn't stamp duty a tax? Something similar on transfer of ownership of players would be good. Why do we stamp a bricks and mortar transaction?