Non-resident sportspeople who perform at UK sporting events are subject to UK income tax on income received in relation to their performance and also on a proportion of their worldwide sponsorship income.
An exemption will be provided in relation to amounts earned by non-resident sportspeople, where that income relates to the:
- 2016 London Anniversary Games, or
- 2017 World Athletics and Paralympics Championships.
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 relaxes its tax rules. Although it is positive to have another ‘one off’ relaxation of these rules for the above mentioned events, it is hoped that the government will consider a permanent change to the rules that will benefit other sporting events.