The Chancellor has announced a one-off income tax exemption for non-resident competitors at the London Anniversary Games, to be held from 26 to 28 July at the Olympic Stadium, Stratford - the first anniversary of the London 2012 Olympic Games opening ceremony.
The London Anniversary Games will comprise the British Athletics London Grand Prix on 26 and 27 July, followed by a one-day Paralympics Grand Prix on 28 July, and the exemption will apply to all three days of competition.
This tax exemption will encourage more world-class international athletes to compete in the event, and has been granted on an exceptional basis because of the unique opportunity this event provides to build on the legacy of the 2012 Games.
Non-UK resident competitors at the London Anniversary Games, to be held at the Olympic Stadium 26 to 28 July 2013, will be exempt from UK income tax on all appearance fees, prize money, and endorsement income related to their performance at the event.
The exemption will apply to all non-UK resident accredited competitors in the event. It will not apply to any officials, sponsors, coaching staff or UK resident athletes who will continue to be liable to UK tax on any income which is related to their participation in the event. The exemption will not cover any other taxes such as corporation tax or VAT.
The Government will introduce legislation in this year’s Finance Bill to enact this exemption.
As announced in January 2012, a similar income tax exemption will also be provided in this year’s Finance Bill for accredited competitors in the 2014 Glasgow Commonwealth Games, which is intended to help spread the Olympic legacy into Scotland and encourage top athletes to compete at the Commonwealth Games.
The event organisers, UK Athletics, are working with the London Legacy Development Corporation (LLDC) and the Mayor of London to maximise the legacy of the London 2012 Games. The purpose of the LLDC is to deliver physical, social, economic and environmental regeneration of the Olympic Park and its surrounding area by maximising the legacy of the Games.