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Will Fallon Sherrock keep all £501,000 of her Netflix winnings? Why debated 'professional' status could trigger tax bill after Luke Littler win

PDC
Fallon Sherrock at Beat Luke Littler on Netflix
Fallon Sherrock caused a huge shock last Friday by defeating Luke Littler on the Netflix show Beat Luke Littler. The 32-year-old Englishwoman won a staggering £501,000, more prize money than she had earned throughout her entire darts career. But how much of that huge prize will “The Queen of the Palace” actually get to keep? British tax rules could work in her favour.
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During the live show in Manchester, Littler faced a series of challengers, each given one leg of 501 to beat the two-time world champion. The 19-year-old Englishman had already beaten his first 14 opponents when Sherrock stepped up to the oche.
The Englishwoman has plenty of big stage experience and it showed against the world champion as she produced an excellent leg under immense pressure. She scored a 180 along the way and checked out 501 in just 15 darts.
Littler had left himself a 142 finish after scoring 140, but he did not get another chance. Sherrock hit double 20 to secure both the win and the £501,000 top prize. The remarkable moment was witnessed by her son, who was attending one of his mother’s tournaments for the first time.
Fallon Sherrock beats Luke Littler on Netflix
Fallon Sherrock stunned Luke Littler and won £501,000

No tax on the top prize?

The huge prize raises the question of how much Sherrock will actually receive in her bank account. Prize money earned at regular darts tournaments is generally treated as taxable income, but different rules apply in the UK to prizes from TV quiz shows and game shows.
Under UK tax rules, cash prizes won by ordinary contestants on game shows are generally treated as windfalls rather than income from work.
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Such prizes are usually exempt from UK income tax and National Insurance contributions. His Majesty’s Revenue and Customs (HMRC) does not distinguish between prizes based on their value.
This means a £501,000 prize is generally treated for tax purposes in the same way as a much smaller amount won on a television show.
For Sherrock, that could mean keeping the entire top prize, provided her winnings are indeed classed as a tax-free game show prize for tax purposes.

Tax rules could work differently for Sherrock

There is, however, an important difference between an ordinary game show contestant and a professional darts player who earns money from competitions.
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Sherrock has competed at the highest level for many years and has earned more than £200,000 in prize money during her career. Whether her Netflix victory is treated for tax purposes as a tax-free game show prize or as income from her professional darts activities depends on the specific circumstances.
It is therefore not certain that the Englishwoman will be able to keep the full £501,000 tax-free.
Even if the original prize is tax-free, future income generated by that money may be taxable. Examples include interest on savings, dividends from investments or capital gains above the applicable allowances.

More than her previous career earnings

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With her win, Sherrock earned more in a single leg than she had made in regular prize money throughout her entire darts career.
The £501,000 top prize is also among the biggest single payouts in darts history. Only the £1 million top prize at the PDC World Darts Championship is higher.
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