AN obstacle that could have prevented top athletes such as Usain Bolt from coming to the Commonwealth Games this summer has been ditched.

The UK Government announced that stars competing at the Sainsbury's Glasgow Grand Prix this summer will be exempt from income tax on appearance fees or bonuses from sponsors.

The event at Hampden Park on July 11 and July 12 is happening for the first time in Scotland, and was moved to dovetail with the Commonwealth Games, which start on July 23.

Athletes like triple London 2012 Olympic champion Usain Bolt have been limiting their appearances in the UK due to rules that mean they are taxed on global sponsorship, endorsement earnings and appearance fees. "As soon as the law changes I'll be here all the time," Bolt said in 2012. "I love being here, I have so many Jamaican fans here and it's wonderful."

Chancellor George Osborne said: "I want to do everything to help make this summer a summer of sporting success in Scotland. Not only is the great city of Glasgow hosting the Commonwealth Games but also the Glasgow Grand Prix as well, and the UK Government will do its part to make sure both are great sporting events.

"The tax exemption the Treasury is announcing will extend the cultural and economic contribution that the Games will bring. It will also ensure Scotland continues to attract the highest standard of athletes."

Chief Secretary to the Treasury Danny Alexander said: "The whole of the UK wants Glasgow 2014 to be a great success.

"By offering this additional tax break, we hope to ensure that the best athletes will come to Glasgow this summer for both this event and the Games itself."

Lord Smith of Kelvin, chairman of Glasgow 2014, said: "Having this Grand Prix event in Glasgow and Scotland for the first time provides an international showcase [event] for Hampden Park, Scotland's National Stadium, our Commonwealth Games venue for athletics, as well as the great global athletes who will come to compete."