Zhao Xintong has made history as the first Asian player to claim victory at the World Snooker Championship.
The 28-year-old secured Crucible glory with an 18-12 win over Mark Williams, who mounted a valiant comeback effort but ultimately fell short.
Along with the prestigious trophy, Zhao collected a handsome £500,000 prize for his triumph.
His historic victory marks a significant milestone for Asian representation in the sport's most prestigious tournament.
Zhao Xintong is set to hand back a large sum of his prize money from becoming world champion to HMRC
Reuters
This substantial prize money, however, comes with significant tax implications for the snooker champion.
HMRC is set to receive approximately £221,000 from Zhao's winnings.
This will leave the newly-crowned world champion with around £279,000 of his £500,000 prize.
The substantial sum flowing into British coffers demonstrates the financial benefits major sporting events bring to our economy.
Despite the hefty tax bill, Zhao's remaining sum still represents a life-changing amount for the talented player.
Interestingly, Zhao will avoid paying additional tax in his native China thanks to a double taxation agreement between the UK and China.
As a British resident, all of Zhao's tax obligations will be fulfilled in the UK rather than being taxed twice.
This arrangement ensures that HMRC benefits fully from his success, with the entire tax payment remaining in Britain.
The agreement represents one of many practical financial arrangements that strengthen Britain's position as a global sporting hub.
Zhao Xintong won the World Snooker Championship on MondayPAAaron Peake, personal finance expert at free credit score service CredAbility, explained the situation to the Express.
"As long as he's tax resident in the UK, which generally means he lives here for more than 183 days a year and has his main home here, he won't normally have to pay Chinese tax on these earnings," Peake said.
He noted that while Chinese tax rules are complex, the double tax treaty would typically ensure any Chinese tax liability is offset by UK payments.
"It's likely Zhao will only be taxed here in Britain and walk away with just under £280k," Peake added.
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Zhao Xintong had previously served a 20-month ban for match-fixingReutersPeake also highlighted potential ways for Zhao to reduce his tax burden slightly.
"As a self-employed athlete, Zhao can deduct certain allowable expenses related to his snooker career, for example, travel, equipment, coaching and accommodation costs," he noted.
However, these deductions would likely have minimal impact on such substantial winnings.
"If these reduce his taxable income, his final tax bill could be slightly lower, but we're unlikely to be talking about a huge difference on such a large prize," Peake concluded.
