Rory McIlroy walked away with a whopping £3.2million after winning the Masters and completing the career Grand Slam on Sunday. But he won’t have to pay any tax in the UK after making the decision to move to the US more than a decade ago.
McIlroy currently bases himself in Jupiter, Florida, after buying a house there at the end of 2012. The stunning town has attracted plenty of professional golfers due to its luxury setting, beautiful weather and outstanding golf courses. The Northern Irishman has flirted with the idea of living in London in the future but has yet to commit to the move, with his current property boasting nine bedrooms, an infinity pool, a games room and a home theatre.
McIlroy’s decision to move to the US was career-based, with the blockbuster star telling Sky Sports ahead of the switch: “I’ll get a place here and then maybe spend three or four months at the start of the year here.
“I think it’s a good move for my career, I feel like I play my best golf over here and I’m comfortable here.”
McIlroy is currently subject to tax in the US, with Forvis Mazars’ head of international private client tax, Paul Barham, revealing to Express Sport in an exclusive interview just how much the golfer is likely to pay.
“Any prize money earned will be subject to US federal tax, the top rate of which is still 37 per cent. Golfers will also have to pay state tax in Georgia at 5.39 per cent,” Barham explained.
“The US tax will be paid by all the golfers playing at Augusta regardless of where they are tax resident and if they are a tax resident in the US, they shouldn’t pay tax on this prize money in any other country.”
Those figures mean McIlroy will pay around £1.36m in federal and state tax following his victory at Augusta, which will leave him to pocket the remaining £1.84m.
And private client tax manager at Kreston Reeves, George Cannon, who advises professional golfers, added: “As a non-UK resident for tax purposes, any winnings Rory receives in relation to overseas performances will not be taxable in the UK but will be subject to the relevant overseas taxes.
“Any earnings that relate to UK performances, such as The Open and The Scottish Open, would be taxable in the UK as those events take place in the UK.
“If the individual is not a UK resident, then they would not have any UK tax to pay in addition to the US taxes as the event is held outside of the UK.”