ATHLETES from outside the UK will be given a tax break while competing in the 2014 Glasgow Commonwealth Games in a bid to attract the best competitors.
Sportsmen and women taking part in the games will be allowed to avoid paying income tax during their stay, in a move estimated to cost the UK Government just under £1 million.
Under normal tax rules, any sportsperson not resident in Britain is subject to UK income tax on any payment in connection with their performance in the country, including a proportion of any worldwide endorsement income.
However, plans to allow a break during the games – which mirror similar exemptions at this year's London Olympics – were announced by Chief Secretary to the Treasury, Danny Alexander, during a visit to see the progress of construction at the Commonwealth Sports Arena and Sir Chris Hoy Velodrome in Glasgow yesterday.
Mr Alexander said: "With six months to go until London 2012, I'm pleased to announce this special exemption for Glasgow 2014, which will prolong the Olympic legacy and help spread the long-term benefits into Scotland. Everyone wants to see the best athletes compete at Glasgow 2014, and this exemption will make that more likely.
"Seeing the Sir Chris Hoy Velodrome, it's clear that Glasgow will be an outstanding venue for the Commonwealth Games."
The manager of triple world record holder Usain Bolt yesterday welcomed the move, but said it was only likely to have an impact on leading sports stars.
Ricky Simms, of PACE Sports Management, said Bolt has not competed in events in the UK in recent years due to the tax he would be forced to pay on his worldwide endorsement income, which is not the case in other European countries.
He said: "I think it's good news and it hopefully will attract some big stars. But it probably won't affect the majority of athletes taking part in the games, so I'm not sure exactly how big an impact it will have."
The sports agent added Bolt has never previously competed in the Commonwealth Games, but said it was too early to tell if he will compete or not in 2014.
The exemption for international athletes will include any appearance fees, as well as the proportion of worldwide endorsement income that HM Revenue and Customs would normally tax. But they will still be liable to the normal taxes applied in the country where they live.
UK-based athletes will continue to pay income tax as normal.
Lord Smith, chairman of the Glasgow 2014 games, said the move would help to attract the "brightest" sports stars.
He said: "This agreement opens the door for the Commonwealth's elite international athletes such as Jamaica's sprinters, Australia's swimmers and cyclists and Kenya's distance runners to compete at the 2014 Commonwealth Games.
"As a major multi-sport event, with a truly global reach, Glasgow 2014 and its games partners are working very hard to make the Commonwealth Games a must-attend event for the brightest stars of the Commonwealth.
"There is no doubt that today's announcement significantly increases the access and attraction for top performers to compete at Glasgow 2014."
The Scottish Minister for the Commonwealth Games and Sport, Shona Robison, who joined Mr Alexander at the new arenas, added: "I am delighted that an agreement has been reached to exempt international competitors from tax on any income arising from their appearance in the Commonwealth Games.
"We want to deliver a memorable Games which attracts the cream of Commonwealth athletes to Glasgow 2014. Today's announcement is a giant stride forward and follows productive discussions between the Treasury, the Scottish Government and the Glasgow 2014 Organising Committee."
Income tax exemptions for those residing outside the UK were introduced for the London Olympics as part of the bidding process for the sporting event.
The Government generally only grants exemptions where it is a necessary condition of the event bid, but has agreed to allow the break in 2014 to help support the games and "prolong the legacy of London 2012".
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article