Rory McIlroy set to lose huge amount in tax after beating Scottie Scheffler to Masters win

TRENDING Stories Videos Your Say It was a tough weekend but I'm so happy to hang in there and get the job done, McIlroy declared afterwards.The triumph earned McIlroy the £3.36million top prize, though a substantial portion will be claimed by tax authorities on both sides of the Atlantic.Jon Elphick, Managing Tax Partner at accounting firm Band, outlined the financial implications for international competitors.The Masters takes place at Augusta National Golf Club in the US state of Georgia. The US tax system charges 'federal tax', a national tax applied on all US source earnings and all US nationals on worldwide income, and 'state tax' payable on earnings generated within specific states, he explained.Federal taxation stands at 37 per cent, with Georgia imposing an additional 4.99 per cent state levy, creating a combined American tax burden of 41.99 per cent on the winnings.This translates to potential US tax payments of up to £1,127,040 for the champion.LATEST SPORTS NEWS:Rory McIlroy atones for Erica Stoll mistake after securing second Masters victoryTyson Fury set to lose millions in tax after bagging huge purse from Arslanbek Makhmudov victoryScottie Scheffler makes complaint after Rory McIlroy makes history with Masters triumphMcIlroy's tax situation is complicated by his relocation from Florida to a property in Wentworth, Surrey, making him a UK tax resident.A US winner's tax liability will be limited to the tax paid in the US, whereas a UK resident winner would be liable to pay UK income tax at a likely rate of 45 per cent on the winnings as well, Elphick noted.However, the system prevents double taxation on the same earnings.The UK liability is reduced by whatever amount has already been paid to American authorities, meaning McIlroy would owe approximately £80,790 to HMRC on top of his US obligations.Taking both jurisdictions into account, McIlroy faces a combined tax bill of roughly £1.2m, representing 36 per cent of his Masters earnings.The six-time major champion is unlikely to dwell on the financial implications, having celebrated the achievement with his family at Augusta.His consecutive victories cement his status among the finest golfers of his generation, with the Northern Irishman now a two-time Masters champion.I wanted to come back and prove last year wasn't a fluke, McIlroy said in his winner's speech.The triumph also meant he narrowly avoided another play-off, having experienced a career-defining moment 12 months earlier when he first claimed the title. Our Standards: The GB News Editorial Charter