Sporting tax breaks extended
The 2014 Commonwealth Games, officially known as the XX Commonwealth Games, will be held in Glasgow from 23 July to 3 August 2014. Athletes from outside the UK will be exempt from UK Income Tax on any payment in connection with their performance in the UK. The exemption has also been extended tothe Sainsbury’s Glasgow Grand Prix (an IAAF Diamond League event), to be held from 11 to 12 July 2014 at Hampden Park, Glasgow.
Under UK tax rules a sportsperson not resident in the UK would usually be subject to UK income on UK earnings including a proportion of any worldwide endorsement income.
This exemption is intended to attract top international athletes to compete at the sporting events.
The exemption will apply to a sportsperson’s income related to their appearance at the Glasgow Grand Prix and Glasgow 2014 Commonwealth Games, which HMRC would normally tax. The athletes will remain liable to tax in the country in which they are resident and the tax break is for competing non UK resident athletes only.