Draft Major Sporting Events (Income Tax Exemption) (World Athletics Indoor Championships Glasgow 24) Regulations 2023

Greg Knight Excerpts

Monday 11th December 2023 General Committees

[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.