A whopping $10 million (£7.41 million) was up for grabs at Royal Lytham & St. Annes Golf Club. The purse represented a 2.56% increase from last year’s $9.75 million (£7.23 million), when Miyu Yamashita walked away with more than $1.4 million (£1,037,552) in winner’s earnings. This year, after prevailing in a Sunday playoff, Japan’s Shiho Kuwaki will receive the $1.5 million (£1,111,663) winner’s prize. 

However, before accounting for caddie fees and other expenses, she will take home only about 55% of that amount. The biggest deduction comes from His Majesty’s Revenue and Customs (HMRC), the United Kingdom’s tax authority. Similar to the Internal Revenue Service (IRS) in the United States, HMRC is responsible for collecting taxes, administering customs, and overseeing other revenue-related functions. 

Under HMRC regulations, non-UK athletes are required to pay UK income tax on prize money earned while competing in the country. The UK’s progressive income tax system calculates tax for high-earning professional golfers. These bands apply the rates:

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For Kuwaki, earning $1.5 million, the total tax deducted was $643,052, leaving her with $856,948.

The 45% top tax rate is the same rate every Open Championship winner has faced from HMRC since 2013. Before that, the top rate stood at 50%, with Jiyai Shin the last champion to be taxed at that rate after winning at Royal Lytham & St. Annes Golf Club in 2012.

That isn’t the end of the deductions, however. Kuwaki will also have to pay her caddie 10% of her winnings, amounting to $150,000. That leaves the Japanese golfer with $706,948 before accounting for any additional expenses she may incur.

South Korea’s Jenny Shin also had to pay UK taxes after winning the ISPS Handa Women’s Scottish Open at Dundonald Links last month. While it may seem like Kuwaki is losing a significant portion of her prize money, she will undoubtedly be delighted with the victory.

Not only did she defeat Esther Henseleit in Sunday’s playoff, but she also captured her maiden international major title. Kuwaki posted rounds of 66, 70, and 73 over the first three days before closing with a 1-under 70 in the final round, recording three birdies and two bogeys.

Henseleit forced the playoff by draining a remarkable 40-foot birdie putt on the 18th hole. However, Kuwaki held her nerve in the playoff, making par to secure the title after Henseleit carded a bogey.