At present non-resident sportspeople are subject to UK income tax on income received for their performance at UK sporting events and also on a proportion of their worldwide sponsorship income.
Legislation will be introduced to provide an exemption in relation to performance earnings and sponsorship income earned by non-resident sportspeople, where that income relates to the 2015 London Anniversary Games.
The existing rules have been criticised by sportspeople who feel that by being taxed on their sponsorship income in the UK they are effectively losing money by performing in the UK. Famous sports stars such as Usain Bolt and Rafael Nadal have refused to compete in UK events until the UK relax their tax rules. Although it is positive to have another ‘one off’ relaxation of these rules for the anniversary games it is hoped that the government will consider a more permanent change to the rules that will benefit not only the London Anniversary Games but also other worthy sporting events.