Income Tax (Earnings and Pensions) Act 2003 section 226E

Sporting testimonial payments

Section 226E provides that payments from sporting testimonials for professional sportspersons who are or have been employed are treated as taxable earnings from the employment most closely linked to the testimonial.

• A sporting testimonial is a single event or a series of events with the same controller, held to raise money for a professional sportsperson in recognition of their service in that role.
• Payments from testimonial funds to the sportsperson, their family, household members, or others for their benefit are treated as earnings from the employment most closely linked to the testimonial.
• A standalone donation-collection activity is excluded from being a sporting testimonial provided that those organising and collecting are independent of the sportsperson, and the donations do not include money raised from other testimonial events.
• If the sportsperson has died, payments to or for the benefit of their estate or personal representatives are treated in the same way as payments to the sportsperson themselves.