Section 8: London Anniversary Games
Summary
1.Section 8 provides for an exemption from income tax for non-UK resident competitors in the London Anniversary Games.
Details of the Section
2.Subsection (1) provides that accredited competitors in the London Anniversary Games who meet the non-residence condition will be exempt from UK tax on any income arising from Anniversary Games activities.
3.Subsection (2) defines Anniversary Games activities for the purposes of subsection (1) as both competing at the Anniversary Games and performing any activity during the games period where the main purpose is to support or promote the Anniversary Games.
4.Subsection (3) defines the non-residence condition for the purpose of subsection (1). To meet the non-residence condition, an accredited competitor must be non-UK resident for the tax year in which the Anniversary Games activity is performed, or, where that year is a split year as regards the competitor, the Anniversary Games activity must be performed in the overseas part of that split year.
5.Subsection (4) provides that withholding obligations provided by section 966 of the Income Tax Act (ITA) 2007 do not apply to any payment or transfer that gives rise to income which benefits from the exemption provided by subsection (1).
6.Subsection (5) defines the terms “accredited competitor”, “the Anniversary Games”, “the games period” and “income” for the purpose of this section.
7.Subsection (6) provides that this section is treated as having come into force on 6 April 2013.
Background
8.As announced on 15 February 2013, any income arising to non-resident competitors from the London Anniversary Games will be exempt from UK tax. This event will be held at the Olympic Stadium, London from 26 to 28 July 2013. A similar exemption will be legislated for competitors at the Glasgow 2014 Commonwealth Games.
9.Both employment and self-employment income arising to non-UK resident accredited competitors from competing in or carrying out activities primarily to promote or support the Glasgow Commonwealth Games where they are performed during the games period will be exempt from UK income tax. This exemption only applies where the competitor holds a London Anniversary Games accreditation card in the athletes’ category which has been issued by UK Athletics Ltd.
10.This exemption will not apply to any non-resident officials, sponsors, or coaching staff who will continue to be liable to UK tax on any income which is related to participation in the event. It will not apply to any UK tax residents, including athletes, except those for whom the year is a split year and where the event falls in the overseas part of the year.
