TC09624 - [2025] UKFTT 01065 (TC)

On 19 June 2013, HMRC opened an enquiry, under s 9A TMA,into the Appellant’s 2011-12 tax return. Further enquiries were opened into the Appellant’s 2012-13, 2013-14 and 2015-16 tax returns, on 8 October 2014, 23 December 2015 and 21 December 2017, respectively. (Footnote: ²)

On 4 September 2013, the Appellant’s agent, Adler Shine (“Adler”) wrote to HMRC, as follows:

“Our client is the sole director and shareholder of the company, which is a Sports Image Management company dealing with the sporting image rights of our client. The company provides the services of our client for personal appearances, expert commentary and other promotional services and seeks also to promote and protect the name and image of our client.”

On 10 January 2014, Adler wrote to HMRC, as follows:

“... there is no formal agreement in place between our client and the company with regard to the assignment of his image rights.

...

The informal agreement between our client and his sports management agent is that our client pays 20% of all negotiated contracts and related incomes to his agent, such amounts being deducted from receipts before funds are credited to the company’s bank account.

Our client’s agent is International Sports Management (ISM) Ltd, [...]”

On 10 February 2017, Adler wrote to HMRC, as follows:

“Firstly I think it is important to clarify that Mr Collingwood has assigned the right of publicity to PDC Rights Ltd. The right of publicity is the right of a person to control the commercial value and exploitation of his or her name, voice or likeness. Because right-of-publicity laws promote artistic and commercial pursuits, they are included among intellectual property law. These laws are usually reserved for celebrities and other public figures whose name and image are important to their career. By allowing celebrities the right to control the commercial use of their name, voice and image, right-of-publicity laws protect the commercial potential of sportspersons.

The contracts referred to, [...] all related to publicity. Mr Collingwood has assigned his rights to income to PDC Rights Ltd. He, personally, has no legal right to benefit from such contracts. This right belongs to the company. Although these contracts are signed by Mr Collingwood and refer to Mr Collingwood personally he has effectively no personal entitlement to income from the contracts. The entitlement belongs to PDC Rights Ltd. I can see that HMRC are in possession of the Agreement for the Assignment of Intellectual Property rights which is between Mr Collingwood and PDC Rights Ltd.”

On 25 July 2017, Adler wrote to HMRC and confirmed that there was a previous enquiry in the Appellant’s tax affairs, which was closed to the HMRC’s satisfaction.