The issue of tax on international sports stars may become easier in future as the chancellor announced that the government will allow exemptions on income and corporation tax relief to be pushed through using secondary legislation, rather than the current system
In his Budget speech, George Osborne also confirmed that the government will exempt from tax the relevant income of non-UK resident competitors at the Glasgow Athletics Grand Prix, to be held this summer.
Tina Riches, national tax partner at Smith & Williamson, said: ‘Great news for sports enthusiasts. Non-resident international sports people can often pay more in tax than they win at a particular UK sports event. As a result some high profile sports people have dropped out of competitions at short notice and the government have had to grant special exemptions. The new rules will make doing this much easier.’
‘More tax receipts can be raised from the business activity around participation of top sports people in UK events than the tax on their individual income,’ Riches argued.
Previous exemptions have included the 2012 Olympic and Paralympic Games (for both taxes) and income tax exemptions for the 2011 and 2013 Champions League finals and the 2013 London Anniversary Games.
Finance Bill 2014 will introduce an income tax exemption for the 2014 Glasgow Grand Prix.
