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Tax break makes Wembley frontrunner for 2011 final
England - 14 May, 2008
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The English government has given in on tax issues to give Wembley a shot at hosting the 2011 Champions League final.
Under current law, players and clubs are liable to pay tax on earnings from bonuses and endorsements if they appear at events on UK land, even if they are based overseas.
The UK Treasury has confirmed now to the Football Association (FA) that if the country wins the right to stage the UEFA Champions League final in 2011 then visiting teams and their players will not face a tax charge.
That could provide a GBP 30 million boost to the economy in tradeoff for what likely will cost the treasury GBP 1.5 million in tax.
The said tax however has not been collected at similar events in the past, such as when the final was played between two Italian sides at Old Trafford in 2003.
The precedent could also help the country in its attempt to host four other big events: the 2013 rugby league World Cup, the 2015 rugby union World Cup, the 2016 European Championship finals and the 2018 World Cup finals.
"UEFA have publicly acknowledged that Wembley would be an outstanding venue for the 2011 Champions League final, and we are hopeful that with the tax obstacle removed our bid will be successful. It is also a positive indication for our 2018 World Cup bid," FA chairman Lord Triesman told the Press Association.
"We are delighted that the Treasury has taken this step and are grateful for the work of Andy Burnham and DCMS in securing this agreement. Discussions with both government departments have been very constructive."
Under current law, players and clubs are liable to pay tax on earnings from bonuses and endorsements if they appear at events on UK land, even if they are based overseas.
The UK Treasury has confirmed now to the Football Association (FA) that if the country wins the right to stage the UEFA Champions League final in 2011 then visiting teams and their players will not face a tax charge.
That could provide a GBP 30 million boost to the economy in tradeoff for what likely will cost the treasury GBP 1.5 million in tax.
The said tax however has not been collected at similar events in the past, such as when the final was played between two Italian sides at Old Trafford in 2003.
The precedent could also help the country in its attempt to host four other big events: the 2013 rugby league World Cup, the 2015 rugby union World Cup, the 2016 European Championship finals and the 2018 World Cup finals.
"UEFA have publicly acknowledged that Wembley would be an outstanding venue for the 2011 Champions League final, and we are hopeful that with the tax obstacle removed our bid will be successful. It is also a positive indication for our 2018 World Cup bid," FA chairman Lord Triesman told the Press Association.
"We are delighted that the Treasury has taken this step and are grateful for the work of Andy Burnham and DCMS in securing this agreement. Discussions with both government departments have been very constructive."
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