Featured Image Credit: Getty
Topics: Golf
Ben McCrum
Golf star Tommy Fleetwood could lose over half of the $10million prize earned for winning the Tour Championship.
On Sunday evening, English golf star Fleetwood won the Tour Championship, finally claiming his first PGA Tour title at the 164th time of asking.
As he approached the 18th hole of the East Lake Golf Course in Atlanta, Georgia, with a three-shot lead over America's Patrick Cantlay, the 34-year-old knew that he had perhaps the best chance of his career to win a title.
And as he holed the winning putt just moments later, Fleetwood couldn't hold back the emotions, as he became only the second Englishman to win the Tour Championship, following Justin Rose in 2018.
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In doing so, Fleetwood has won a stunning prize of $10m (£7.4m), but he won't be able to keep all of it.
Despite winning seven career titles on the European-based DP World Tour, Sunday's win in Georgia is perhaps the most significant in Fleetwood's career, and the most financially rewarding.
"When you've lost so many times, a three-shot lead down the last doesn't feel like that many," joked a tearful Fleetwood after the win.
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But, tax laws in both the USA and the UK could mean that the Southport man is set to lose up to $6.9m (£5.1m) of his prize pot.
As a non-resident alien (NRA) earning income in the US, prize money is typically subject to a 30% withholding tax, meaning that the IRS will take around 30% ($3m/£2.2m) of Fleetwood's $10m.
Not only this, but as a UK resident, the golf world no.10 remaining prize money of around $7 million is taxable as income under UK law.
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Upon his return England, Fleetwood must declare his winnings to HMRC, who could apply a tax rate of up to 45%, depending on his full tax return and allowances.
If the tax rate were to be this high, he would lose another £3.15 million ($4.3m) of his prize money, taking his total losses to around $6.9m (£5.1m), leaving him with just £2.3m of his winnings.
However, it's not all bad news for Fleetwood, as the UK. and US have a double taxation agreement, meaning that he can claim a foreign tax credit for the $3m of tax already paid in the US, avoiding being taxed twice on the same earnings.