Posted by Nick Day on 29 Aug 2013

Commonwealth Games – Non-Resident Tax Exemption

HM Revenue & Customs (HMRC) has a special team that monitors the tax affairs of sports people and entertainers who visit the UK to perform.

Controversy has arisen in the past because stars such like Usain Bolt have avoided competing in the UK, as the UK seeks to tax not only earnings relating to UK track events at which athletes compete but a proportion of their other world-wide income.  This has made it economically unviable for some stars to compete in the UK and prompted calls for a change in the rules.

Fortunately, non-resident competitors at the 2014 Commonwealth Games in Glasgow will benefit from a tax exemption designed to ensure the best athletes are not discouraged from competing. The exemption will apply to income earned during the accreditation period for performances at Glasgow and any activity that supports/promotes the 2014 Games or future Commonwealth Games.

The exemption applies for income tax purposes only and to those athletes that are non-resident for UK tax purposes under the UK’s Statutory Residence Test (SRT).

Please click here for further details of the UK’s SRT and rules for non-domiciled individuals and on the following link for related expatriate tax services provided by Tax Innovations.

Tax Innovations Non-Resident Tax Exemption Service

Here at Tax Innovations, we have experience of assisting non-resident entertainers and sports people with their UK tax filing and withholding obligations, and of communicating with HMRC on their behalf.

Contact us

If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or customerservice@taxinnovations.com.