Tax Rebates & Refunds

Foreign athletes exempt from income tax rules in Budget 2013

April 8, 2013
Posted in Income Tax — Written by Chris

As part of this year’s Budget, the Chancellor George Osborne has revealed that foreign athletes like multiple gold medal winner Usain Bolt will be exempt from paying income tax in the coming tax year.

The exemption applies to the London Anniversary Games, an event to celebrate the 2012 London Olympic Games which will be held in July, as well as the Commonwealth Games which will be held in Glasgow next year. The previous tax rules stated that foreign athletes must pay tax on appearance fees and prizes won when competing in the UK, as well as on endorsement income earned whilst in the country.

However, for a limited period only, athletes such as Bolt will be able to take part in the two upcoming events without having to pay income tax to HMRC, the government department which handles income tax along with tax rebates. They will still have to pay VAT and corporation tax though.

Explaining why the tax exemption for foreign athletes has been included in the 2013 Budget, Sports Minister Hugh Robertson said:

“We want to attract the very best athletes, and this helps us do that.”

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