Posh, Becks and their paychecks

3 min read
13 Oct 2023

Posh and Becks have spiced things up by starring in Netflix’s latest docu-series Beckham.

It’s the talk of the town – you either love them or hate them, want to be them or nothing like them. And buzz cuts might even make a comeback. 🪒

Tapping into Man’ United fans and haters, Spice Girls stans and beraters, the Beckhams have made their way back onto our radars, for better or worse. And with so much hype surrounding them, we couldn’t resist giving our two cents. Tax-related, of course. 💁‍♀️

If you wanna be my lover 🎵

With a nickname like ‘Posh Spice’, Victoria likes the finer things in life. And, with over 15 engagement rings worth over £30 million, it makes sense. 💍

But, what if Victoria sells one or two?

Well, let us introduce you to Capital Gains Tax.

Capital Gains Tax is tax on the profit you make when you sell an asset – property, jewellery etc. 💰
There is a tax-free Capital Gains Allowance, meaning you don’t pay tax on the first £3,000 of profit you earn for the 2023/24 tax year

David, on the other hand, on top of his staggeringly high football salary, is known for securing lucrative deals with brands like Armani, Gilette and Addidas. ⚽

With that in mind, he’s probably spent a fair bit of money on his wife’s countless engagement rings over the years, meaning their sale would earn a profit well over £3,000.

And considering her net worth (around ten times that of the other Spice Girls) Victoria would have to pay CGT at a higher rate, 20%. 🤯

Curious to know exactly how much CGT Posh would pay? Check out our Capital Gains Tax calculator below.

Your situation

Tax and profit

Your profit from
shares
£20,000
£3,000 tax-free CGT allowance
?
Capital Gains Tax to pay
£3,273
Profit after tax
£16,727

How your capital gains tax is calculated

The total capital gains tax (CGT) you owe depends on two things:

How much you earn in total
What type of assets you sell

Your overall earnings determine how much of your capital gains are taxed at – 10% or 20%.
Our capital gains tax rates guide explains this in more detail.

In your case where your capital gains from shares were £20,000 and your total annual earnings were £69,000:

Capital gains tax (CGT) breakdown

You pay no CGT on the first £3,000 that you make

You pay £127 at 10% tax rate for the next £1,270 of your capital gains

You pay £3,146 at 20% tax rate on the remaining £15,730 of your capital gains

Tax bill amount £3,273

I want to pay by

Savings frequency

You need to save

£4.91 per day

to pay your £3,273.00 tax bill by 31/1/2026 which is in 666 days

Bend it like Beckham

As we’ve learnt, Becks was one of the first sports professionals to capitalise on their fame off the pitch.

From footballer to fashionista and then turned businessman, David’s not missed a hat trick in the book.

Which brings us to the noughties and the release of the well-loved Bend It Like Beckham. But, we’re not as interested in sports comedies as we are tax.

Bending the rules for Becks

In 2005, Spain introduced a law allowing foreign skilled professionals who moved to Spain to pay a fixed reduced tax rate 👀
This allowed the likes of Beckham to pay tax at a rate of 24% instead of 43% on any income up to €600,000
The law gained its nickname the Beckham Law after David became one of the first expats to take advantage of it

It seems like Real Madrid really wanted Becks. Adiós Fergie! 👋

Spice up your life 🎵

In 2013, the celebrity power couple splashed millions on a mansion appropriate for British royalty in Holland Park.

But, when celebrities are involved, a house can’t become a home without a few renovations. And we’re not talking about giving the house a lick of paint. No, the couple spent a whopping £8 million in 2016 spicing up their mansion. 👷

With an accountant likely on speed dial, the Beckhams must know that if they ever sell their primary residence, after increasing its value with renovations, they’ll have to pay CGT.

But, what if they never sell it?

Eventually, the property would be inherited by the couple’s children who would most likely sell it. But, first, they’d need to pay Inheritance Tax. 🏡

Inheritance Tax is paid by a person who inherits money, assets, or property from someone who has passed away
There’s nothing to pay if the value of the estate you receive is less than the £325,000 threshold
The Inheritance Tax rate is currently 40% 😓
You’ll only be charged on the part of your estate that’s above the threshold
For example, if your estate is worth £500,000 Inheritance tax will be 40% of £175,000 (£500,000 minus the £325,000 threshold)

With a million-pound mansion, the Beckhams would certainly be over the threshold, £325,000.

But, they won’t have to worry about Inheritance Tax anytime soon. 🫶

Who do you think you are? 🎵

If you Wannabe rich, not paying income tax for one year could work, right?

Allegedly, Posh, Baby, Ginger, Scary and Sporty, tried just that and didn’t pay their income tax for one year 😮

It was reported that this was as a result of their non-resident status during their world tour. ✈️

A non-resident is someone who works in the UK temporarily and their primary tax residence is outside the UK. They pay tax on their UK earnings, not money earned from abroad 🌍
If you no longer live in the UK, you still might be required to file a Self Assessment tax return with HMRC
Non-residents are typically physically present in the UK for less than 183 days in a tax year or, own a home in the UK that isn’t their only home, which they haven’t lived in for more than 90 days in the past tax year 🧳

2 Become 1 🎵

In 1999, Posh and Becks tied the knot with each other and OK! Magazine. 💒

Their Robin Hood-themed wedding grabbed worldwide attention, but not for stealing from the rich and giving to the poor. 🏹

The only thing that was stolen was our hearts when OK! gave us an exclusive peek into their special day, costing the magazine $1.2 million!

1999 must have been a good time to be Posh and Becks. But, you wouldn’t have been envious of their income tax bill. 💸

Income Tax is the tax you pay on your earnings
Currently, the UK basic income tax rate that most people are taxed is 20%. This increases to 40% for your earnings above £50,270 and to 45% for earnings over £125,140 📈
You only have to pay Income Tax on the income above your Personal Allowance, which is a tax-free allowance that everyone in the UK has

After receiving millions from OK!, the newlyweds would’ve been taxed at the highest rate that year. 👰

Goodbye 🎵

Since the release of Beckham, there’s been lots of speculation as to why Posh and Becks are giving us the inside scoop.🍦

Nostalgia, PR stunt, or cash flow issues? We guess that’s something only HMRC know. 🤫 But, who cares? Posh and Becks are the ultimate pop icons and that’s what we’re here for!

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Mollie Adams

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Posh, Becks and their paychecks