September 21, 2023

Manchester United faces double tax bill if it moves to Cayman Islands

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MANCHESTER United’s tax bill will rise if its owners complete their proposed move of the club’s parent company to the Cayman Islands, according to its stock market flotation documents.

Historically, the Premier League club has only ever been subject to the British tax regime.

However, as part of its upcoming flotation in New York, its parent company has been moved to the Cayman Islands by its owners, the Glazer family of Florida.

According to United’s initial public offering filings, this means it is likely the club will pay US taxes too.

United is currently subject to the statutory UK tax rate of 27.5 per cent. US Federal income tax rate is 35 per cent.

“Although we are organised as a Cayman Islands corporation, we believe that we will be treated as a US domestic corporation for US federal tax purposes,” the IPO documents state.

“As a result, we will be subject to US federal income tax on our worldwide income. In addition, we will primarily be subject to US and UK tax rules in the future, whereas we have previously been subject only to UK tax rules.”

The Glazer family is floating the club in a bid to raise money to reduce the club’s debt burden of about £440 million.

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