The Premier League could face an exodus of high-profile players if the government continues plans to eliminate the non-dom tax status in the upcoming Budget, experts have warned.
Changes to the way tax is paid on overseas earnings could prove “an own goal” if they cause players to leave the English top flight when they come into force in April next year, having been announced by the previous government.
A non-dom is a UK resident whose permanent home is outside of the country for tax reasons. So for current Premier League footballers, monies earned beyond the UK and paid into foreign bank accounts – such as international appearance fees or image rights – are not taxed in the UK, but Premier League wages in a UK bank account are.
However, changes to this system which could be reiterated by Rachel Reeves’ Budget later this month would see all earnings taxed by the UK Government, often at a higher rate than they would pay in other jurisdictions.
“For those who have already been in the UK for four or more years as of 6 April 2025, any offshore income and gains will generally be fully taxable,” Sophie Dworetzsky, partner in the private client team of law firm Charles Russell Speechlys tells City AM.
“This contrasts with the present position where offshore income and gains of resident non-doms are not taxed unless brought onshore generally.
“It is likely that many internationally mobile footballers will have established trusts and companies outside the UK which hold investments on which they are not currently taxed. This will change markedly on 6 April so that if they can benefit from the structures they will be taxed on income and gains arising within them.”
Non-dom own goal
One sports agent with international sportspeople on his books told City AM that the future of non-dom tax status was a topic of discussion with some players.
The four-year limit could mean that players are only prepared to sign shorter contracts, unlike the eight-year deals dished out by Chelsea.
West Ham majority shareholder David Sullivan cited potential changes to non-doms as a reason for cutting the asking price on his London mansion, arguing that some of his friends had already left the country over the plans.
“Separately, under the current proposals, once a footballer [or anyone else] has been a UK resident for 10 years their worldwide assets will be within the UK inheritance tax net for another 10 years,” Dworetzsky adds.
“While 10 years is a long time in football, it is likely fair to assume that many internationally mobile footballers will move in advance of a 10-year timescale if they would otherwise have stayed.”
Manchester City star Kevin De Bruyne, for example, has been in the UK for nine years and a month and would come under the worldwide asset inheritance net next season.
“All of this means clubs may find it easier to attract new residents and that footballers may arrive in the UK with a plan to leave after not much more than a few years here,” Dworetzsky argues.
“The lack of an attractive longer-term tax regime for individuals moving to the UK from abroad might be regarded as an own goal.”