Draft Major Sporting Events (Income Tax Exemption) (World Athletics Indoor Championships Glasgow 24) Regulations 2023
(6 months, 2 weeks ago)
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The Financial Secretary to the Treasury (Nigel Huddleston)
I beg to move,
That the Committee has considered the draft Major Sporting Events (Income Tax Exemption) (World Athletics Indoor Championships Glasgow 24) Regulations 2023.
It is a pleasure to serve under your chairmanship, Mr Dowd. It will surprise nobody in the room to learn that I am particularly enthusiastic about this evening’s debate on the regulations, given that I was a sports Minister. These draft regulations are of great interest to many sports fans, because they provide an income tax exemption for overseas individuals approved by World Athletics who will participate in some way in the World Athletics indoor championships in Glasgow next spring.
Sir Greg Knight (East Yorkshire) (Con)
The instrument refers to “accredited persons” and “relevant activity”. Are “relevant activities” all on-the-pitch activities, or could, for example, a caterer coming from overseas to provide ethnic food be an accredited person carrying out a relevant activity?
Nigel Huddleston
The category is not broad, and specifications will be made by World Athletics. The exemption will apply to specified individuals only. I will provide my right hon. Friend with more information about that later, but there are restrictions on who is in the tax exemption category; as he will of course understand, the exemption needs to be narrow.
The exemption will apply to any UK income that an accredited individual receives for participating in the event, or for duties and services performed in connection with the championships. The Government recognise the great benefits and rewards that sport brings to this country. International championships and meets inspire the next generation of athletes, bring together people and communities, and provide a boost—often a significant one—to the economy. These benefits being evident, and with support from every corner of the House, World Athletics in October 2021 awarded Glasgow the right to host the championships. This is a first for Glasgow, and it is the third occasion on which the UK has been given this prestigious event.
The Government are committed to making the UK an attractive location for hosting world-class sporting events, and successive Governments have provided income tax exemptions for those hosting them. Indeed, granting a tax exemption was a mandatory requirement of the UK hosting this prestigious event. One of the most obvious benefits of the exemption is that it encourages and incentivises participation from foreign athletes in major sporting events.
The UK has a long track record of showcasing its ability to host major events. Statutory tax exemptions have been provided for other world-class events, including the UEFA men’s and women’s football championships in 2021 and 2022, the Birmingham 2022 Commonwealth games, and the 2023 women’s Finalissima football match, to name but a few. I am confident that hon. Members will agree that it is in keeping with the Government’s policy for us to provide a similar exemption for this exceptional event.
The draft regulations use powers in the Finance Act 2014 that allow a tax exemption to be provided for through secondary legislation. A tax exemption is reserved for only the most exceptional events, and I am positive that the Committee will agree that the World Athletics indoor championships Glasgow 24 meet that standard. The exemption from UK income tax will apply to non-resident participants, officials and individuals designated by World Athletics for income earned in connection with the championships. The exemption will run from 23 February to 4 March 2024; it applies for a short period before the event commences, to cover any duties performed in connection with the championships.
The exemption will reduce extra demands on designated individuals. Being exposed to taxes in two countries is administratively difficult to deal with, and would also mean consideration having to be given to issues such as withholding taxes, completing self-assessment tax returns, and double taxation treaties. The income tax exemption for the World Athletics indoor championships Glasgow 24 supports the Government’s ongoing commitment to making the UK a global leader in hosting world-class major sporting events. I commend the instrument to the Committee.
Tulip Siddiq (Hampstead and Kilburn) (Lab)
It is a pleasure to serve under your chairship once again, Mr Dowd.
As we have heard from the Minister, the regulations provide individuals with an exemption from income tax on income resulting from their involvement in the 19th World Athletics indoor championships, which are to be held in Glasgow. There have been similar regulations for other world-class sporting events, and the Opposition have supported the Government’s efforts to ensure that appropriate arrangements are in place. I put on record the Opposition’s continued support for Britain’s hosting world-class sporting events. The UK continues to play host to the very best of global sport. Having been the only girl on the all-boys football team throughout school, it was a particular pleasure for me to see that the 2028 European football championships were recently awarded to all four of our nations, alongside the Republic of Ireland.
In 2024, it will be fantastic to see the great city of Glasgow, which I was in last week, host the world indoor championships, and there will inevitably be a clamour to attend. So many people across the UK, particularly young people, will be inspired by the sporting ability of competitors in Glasgow from our country and beyond, so what is the Minister doing to ensure that everyone who lives in Glasgow gets a fair opportunity to purchase tickets, and is not left out of a great sporting event taking place in their town?
The Opposition will not oppose the statutory instrument, and I am sure that the Minister will join me in wishing the very best of luck to the British athletes selected for next year’s world indoor championships.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
I should not worry, Mr Dowd: I will not detain the Committee too long. Glasgow, as we know, is the UK’s premier destination for events, cultural or sporting, and a sporting event is why we are here. I would say that, as the Scottish National party sports spokesperson, but there is also the fact that my constituency now has over 10,000 voters in Glasgow. Who can forget the 2014 Commonwealth games—the best Commonwealth games ever? Members are free to disagree, but those games were significantly better than any events held in Edinburgh. Whether the Commonwealth games will come back to Scotland is up for debate, given the problems that those games are having. Just recently, Scotland hosted the first combined cycling world championships, which went fantastically well, and which I saw at first hand.
I very much look forward to another succesful sporting event being held in Glasgow. I assure the Minister that I will not divide the Committee on the regulations.
Nigel Huddleston
I am relieved to hear that. I thank hon. Members for their brief but supportive contributions. The hon. Member for Hampstead and Kilburn raised a really important point about tickets. When we host major sporting events, it is important that they be as inclusive as possible. Ticketing is primarily the responsibility of the organisers. The event is sold out, but more tickets are likely to become available. I am sure that organisers have heard her comments, and her wish for the distribution of tickets to be as inclusive as possible is perfectly valid.
The hon. Member for Paisley and Renfrewshire North also raised important points. This is an amazing opportunity for Glasgow, his constituents and others to celebrate a major sporting events, plus of course we should never underestimate the really important economic contribution of such events; we saw the contribution made by the Commonwealth games last year.
My right hon. Friend the Member for East Yorkshire asked who would be included in the measures. They are expected to impact about 1,100 non-UK residents. That includes the sportspeople competing, but also some officials and other designated individuals. The governing body appoints people to the list.
The smooth delivery of the World Athletics indoor championship Glasgow 24 will further support the development of, and participation in, athletics at home and abroad. It is a world-class event, showcasing some of the best athletes in the world. It will provide entertainment and top-level athletics to fans in Glasgow. Hosting the event will support and strengthen the UK’s sport and leisure industry by enhancing this country’s global reputation as a host of international sporting events. For those reasons, I commend this legislation to the Committee.
Question put and agreed to.