Tommy Fleetwood’s long-awaited first PGA Tour victory at the Tour Championship came with a $10m (£7.4m) winner’s cheque — but he won’t keep anywhere near the full amount.
As a non-resident competing in the US, Fleetwood’s earnings are immediately hit with a 30% withholding tax, cutting around $3m (£2.2m) from his prize money. Once back in the UK, he must also declare the income to HMRC, where tax rates can reach up to 45%.
If taxed at the top rate, Fleetwood could lose a further £3.15m ($4.3m), taking the total deductions to roughly £5.1m ($6.9m). That would leave the 34-year-old with just £2.3m of his £7.4m winnings.
The UK and US have a double-taxation agreement, meaning Fleetwood can offset the $3m already paid to the IRS, but his final take-home figure will still be less than half of the original prize.
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