OccupiedPalestineBlues
Well-Known Member
I'm still hoping Levy digs in, upsets Harry and we get him to buyout his own contract for £60m. Would be so sweet and an absolute bargain.
iirc the issue with giving a player £60M to buy out his contract is that our payment to said player is deemed to be income for the purpose of taxation.
So, if my recollection is correct then the £60M gets taxed at the 45% upper rate which leaves him short by almost half the amount. For the player to clear £60M you need to give him circa £110M.
There may be ways around it but, as far as I’m aware, if it’s classed as personal income the taxation is prohibitive.
I must say that I’m foggy on the topic and I’d welcome an education on this from one of our resident accountants or anyone who’s recently looked into this particular issue.
