I just came across some statistics which I wanted to share with you.
Under current rules, in line with most countries, sports stars taking part in matches or tournaments in the UK are liable for income tax on prize money and appearance fees. However HMRC have agreed an exemption for non-resident sportspeople which applies for the period of 30 March to 8 November 2012 (The London Games).
I think that as everyone in the UK pays tax so should those sports stars who earn money on British soil. I agree that there must be a balance, we do not want to deter international icons because they are paying more tax than they earn, which is the reason why some have refused to come back to compete – such as Usain Bolt.
I hope that a fair and balanced tax regulation is implemented to avoid dissuading sporting greats from attending events in the UK and the outcome reflects a compromise to that which is already in place. The question is why do the HMRC always make the regulations so complex?