When is a Sporting Testimonial component taxable or non-taxable?
A sporting testimonial is an event held either once or as a series, usually organised to honour a sportsperson who has been associated with a particular sports club for a considerable period. Such events may also be arranged for other reasons, such as marking the conclusion of the sportsperson's playing career or if their career is prematurely ended by injury.
The main purpose of a testimonial is to raise funds for the benefit of the sportsperson. In some instances, the sportsperson may decide to donate some or all of the proceeds from their testimonial to charitable causes.
It's important to note that a sporting testimonial is applicable only to sportspersons. While a groundsman or a coach may receive recognition in a similar fashion, they would not be eligible for the financial benefits associated with this practice under current legislation.
Sporting Testimonials Taxable: When the note component Sporting Testimonials Input is captured and exceeds £100 000, the excess will be shown on this automatic component.
Sporting Testimonials Non-Taxable: When the note component ‘Sporting Testimonials Input’ is captured, the amount up to the £100 000 cap will be shown on this automatic component.
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