Draft Major Sporting Events (Income Tax Exemption) (2021 UEFA Super Cup) Regulations 2021
(Limited Text - Ministerial Extracts only)
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The Chair
Being a very old-fashioned bloke, I entirely disapprove, but on this particular occasion, I am happy to allow the hon. Gentleman to remain improperly dressed. I am grateful to him for his courtesy in raising the matter with the Committee.
The Financial Secretary to the Treasury (Jesse Norman)
I beg to move,
That the Committee has considered the draft Major Sporting Events (Income Tax Exemption) (2021 UEFA Super Cup) Regulations 2021.
The draft regulations provide an income tax exemption for accredited overseas individuals—however they may be dressed, Mr Gray—who participate in the annual UEFA super cup football match. The exemption will apply to any UK income that a non-UK resident receives for playing in the match or for duties and services performed in connection with the game.
The Committee will be aware of the severe impact of coronavirus on all sporting competitions since March 2020. Numerous large-scale events in this country and around the world have been cancelled or postponed to protect public health. It was very good to hear, then, that the Irish Football Association was successful in bidding to host the annual UEFA super cup game, which this year features Chelsea, winners of the Champions League, and Villareal, winners of the Europa League, in Belfast on 11 August. It would be wrong for me to display any partiality about the outcome of that game, but Villareal beat my team, Manchester United, in the final of the Europa League, and we are not at all sore about it. I am sure Members on both sides of the Committee will agree that the hosting of such a high- profile match will be a further welcome sign that the UK is returning to a more normal sporting environment.
Let me turn to the specific legal changes being made. As a fundamental condition of hosting the 2021 UEFA super cup game, the UK is required to provide an income tax exemption for competitors and officials who are not tax resident in this country. In previous years, the Government have opted to provide statutory tax exemptions for a range of similar sporting competitions, including the 2017 UEFA Champions League final, the 2017 world athletics championships and, of course, the 2020 UEFA European football championship. As that list illustrates, a tax exemption is reserved for only the top sporting events, and any decisions are made case by case.
To be considered for a tax exemption, an event must satisfy three policy conditions: it must demonstrate the highest level of world sport; it must be internationally mobile; and the granting of an exemption must be a necessary condition of a bid to host the event. I hope the Committee agrees that it is consistent with Government policy to provide a similar exemption now for the UEFA super cup game.
The statutory instrument makes use of the powers introduced in the Finance Act 2014 to provide a tax exemption through secondary legislation. The exemption from UK income tax will apply to non-resident players, officials and individuals designated by UEFA on income earned in connection with the super cup match. The exemption will run from 10 to 12 August 2021.
I conclude by acknowledging that the past 18 months have been difficult for sport. The regulations will help to support the sector and provide a welcome boost for Northern Ireland.
Jesse Norman
I thank the hon. Gentleman very much for his question and for his party’s support for the legislation.
Of course, I am speaking as a Minister in the debate. From that point of view, it would be in appropriate for me to be volunteering personal views that might be taken to be indicative of the Government’s position. The Government certainly recognise the situation of the people the hon. Gentleman describes. It is important to say that although the instrument may not affect them, it certainly affects a wide range of people involved in the staging of the event who may not necessarily be plutocratic or have great incomes, as many footballers do.
The hon. Gentleman’s point that people should be properly paid is an important one, and it was recognised by the Government in the way that the last Chancellor but two or three—the former right hon. Member for Tatton—took specific measures to raise the minimum wage and support people on the lowest incomes. That has also been reflected in the ways that tax policy has evolved with the raising of the threshold for income tax.
The hon. Gentleman is right to point to the status of those people and to the situation of people on modest incomes. It is right for the Government to continue to support those people through the tax system. Although those issues have little direct bearing on the instrument before us, I think it is important that they are often taken in public, and I am grateful to him for raising them.
Question put and agreed to.