TC09624 - [2025] UKFTT 01065 (TC)

This appeal concerns the correct tax treatment of various sponsorship payments (“the Payments”) received from sponsorship contracts made pursuant to agreements (“the Agreements”) between the Appellant (Paul Collingwood) and:

The Appellant was a professional cricketer employed by Durham County Cricket Club from 1995, until his retirement in 2018. By an agreement dated 21 January 2005 between the Appellant and PDC Rights Limited (“the Company”), the Appellant purported to assign his intellectual property rights, and any analogous intangible rights, to the Company (“the Assignment Agreement”). HMRC assert that the Appellant was the person legally entitled to receive the Payments pursuant to the Agreements, and not the Company. HMRC therefore submit that the Payments are assessable as profits of self-employment.

The Appellant appeals against closure notices issued by HMRC (“the Closure Notices”) pursuant to ss 28A(1B) and (2) of the Taxes Management Act 1970 (“TMA”), as follows:

The Closure Notices charged additional income tax to the Appellant on the basis that income arising from the Agreements with Slazengers, PCA and Clydesdale was assessable on the Appellant personally, rather than on the Company. (Footnote: ¹)

The Appellant submits that the Agreements all related to publicity, and that he had assigned his rights to the Payments received under the Agreements to the Company and, therefore, had no legal right to benefit from the Agreements. The Appellant further submits that because HMRC had opened an earlier enquiry into sponsorship income from Dunlop Slazenger on 27 August 2008, and closed it on 15 April 2009, there was a legitimate expectation that HMRC accepted that sponsorship receipts should be assessed on the Company, rather than on the Appellant personally.