Policy paper

2015 London Anniversary Games

Published 8 July 2015

Who is likely to be affected

Non-UK resident sportspeople competing in the London Olympic and Paralympic Anniversary Games 2015 taking place at the Queen Elizabeth II Olympic Park and stadium from 24 to 26 July 2015.

General description of the measure

This measure provides an exemption from UK Income Tax for non-UK resident sportspeople on any income received as a result of their performance at the 2015 Anniversary Games.

Policy objective

This exemption has been put in place to celebrate and maintain the legacy of the London 2012 Olympic and Paralympic Games, and to mark its third anniversary.

Background to the measure

This exemption was announced at Summer Budget 2015. It applies only to income received by non-resident sportspeople who compete at or carry out activities between 22 and 28 July 2015 as part of the 2015 London Anniversary Games. The exemption will also apply to a UK resident for whom this activity is performed in an ‘overseas’ part of the year.

Detailed proposal

Operative date

This measure will affect income earned by non-resident competitors in the 2015 London Anniversary Games which arises between 22 and 28 July 2015.

Current law

Section 27 of Income Tax (Earnings and Pensions) Act 2003 and sections 13 and 14 of Income Tax (Trading and Other Income) Act 2005 impose a UK Income Tax charge on respectively non-resident sportspeople’s employment and self-employment income that is connected to a performance which takes place in the UK. Without the exemption provided by this measure, non-resident sportspeople would be taxed in the UK on both their income gained as a result of their performance at the 2015 Anniversary Games, plus a proportionate share of their worldwide sponsorship income. The exemption will not apply to the income of UK resident sportspeople.

Proposed revisions

Legislation will be introduced in Summer Finance Bill 2015 to provide an exemption from the above UK Income Tax charges for non-resident sportspeople on income related to a 2015 London Anniversary Games performance. A similar exemption will apply to UK residents for whom the tax-year 2015 to 2016 is ‘split’ and for whom the games occur in the ‘overseas’ part of the year.

Summary of impacts

Exchequer impact (£m)	2015 to 2016	2016 to 2017	2017 to 2018	2018 to 2019	2019 to 2020	2020 to 2021
	negligible	negligible	nil	nil	nil	nil
	This measure is expected to have a negligible impact on the Exchequer.
Economic impact	This measure is not expected to have any significant economic impacts.
Impact on individuals, households and families	The exemption means that non-resident competitors will not be subject to UK Income Tax on income related to the 2015 London Anniversary Games. They would be liable to tax on this income in the countries in which they are resident. UK resident competitors will not benefit from the exemption. The fact that exempted individuals would not need to fill out tax returns for this income will reduce the administrative burden on them.
Equalities impacts	There is no impact on groups with protected characteristics.
Impact on business including civil society organisations	This measure is expected to have a negligible impact on businesses and civil society organisations. It only affects a small number of non-resident sportspeople and may have a very slight effect in easing the burden on a very small number of associated accountants or management companies.
Operational impact (£m) (HMRC or other)	It is not expected that implementing this change will incur any additional costs for HM Revenue and Customs (HMRC).
Other impacts	Other impacts have been considered and none have been identified.

Monitoring and evaluation

This measure will be kept under review through communication with taxpayer groups affected by the measure.

Further advice

If you have any questions about this change, please contact Aidan Close on Telephone: 03000 585 255 or email:aidan.close@hmrc.gsi.gov.uk.