Section 9: Glasgow Commonwealth Games
Summary
1.Section 9 provides for an exemption from income tax for non-UK resident competitors in the Glasgow 2014 Commonwealth Games.
Details of the Section
2.Subsection (1) provides that accredited competitors in the Glasgow 2014 Commonwealth Games who meet the non-residence condition will be exempt from UK tax on any income arising from Commonwealth Games activities.
3.Subsection (2) defines Commonwealth Games activities for the purposes of subsection (1) as both competing at the Glasgow 2014 Commonwealth Games and performing any activity during the games period where the main purpose is to support or promote the Glasgow 2014 Commonwealth Games or any future Commonwealth 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 Commonwealth Games activity is performed, or, where that year is a split year as regards the competitor, the Commonwealth Games activity must be performed in the overseas part of the year.
5.Subsection (4) provides that withholding obligations under section 966 of the Income Tax Act 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 games period”, “the Glasgow Commonwealth Games” and “income” for the purpose of this section.
Background
7.As announced by the Chief Secretary to the Treasury on 26 January 2012, any income arising to non-resident competitors from the 2014 Commonwealth Games will be exempt from UK tax. A similar exemption will be provided for non-resident competitors in the 2013 London Anniversary Games.
8.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 2014 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 Glasgow 2014 accreditation card in the athletes’ category which has been issued by Glasgow 2014 Ltd.
9.The 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 their 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 into the overseas part of the year.
