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Newcastle to face heavy VAT bill
England - 28 August, 2006
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English clubs are facing major VAT tabs following a VAT appeals tribunal that ruled against Newcastle United.
The tribunal ruled Newcastle United was not allowed to claim back the tax on fees paid to agents involved in transfers between clubs and contract negotiations with players. It must now pay GBP 475,000, and other clubs are expected to be targeted for backdated tax relating to the past three years, including Manchester United, Chelsea and Arsenal.
Chelsea has spent in the region of GBP 300 million on transfers in the past three years, so it could be presented with a bill around GBP 16 million, The Times reported.
Newcastle said it will appeal to the High Court.
The tribunal ruled Newcastle United was not allowed to claim back the tax on fees paid to agents involved in transfers between clubs and contract negotiations with players. It must now pay GBP 475,000, and other clubs are expected to be targeted for backdated tax relating to the past three years, including Manchester United, Chelsea and Arsenal.
Chelsea has spent in the region of GBP 300 million on transfers in the past three years, so it could be presented with a bill around GBP 16 million, The Times reported.
Newcastle said it will appeal to the High Court.
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