Draft Major Sporting Events (Income Tax Exemption) (Glasgow 2026 Commonwealth Games) Regulations 2026
(1 day, 6 hours ago)
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The Exchequer Secretary to the Treasury (Dan Tomlinson)
I beg to move,
That the Committee has considered the draft Major Sporting Events (Income Tax Exemption) (Glasgow 2026 Commonwealth Games) Regulations 2026.
It is a pleasure to appear before you today, Sir Alec. The draft regulations provide an income tax exemption for non-UK resident competitors, officials and certain other designated individuals employed by or associated with the participating national teams and international federations, or otherwise involved with the Glasgow 2026 Commonwealth games.
The Government recognise the great benefits that all sport—including sport at the highest level—brings to this country. International tournaments inspire the next generation of athletes, bring together communities and boost the economy. I am sure that members of the Committee will be aware of the Government’s commitment to making the UK an attractive location to host world-class sporting events.
Successive Governments have provided income tax exemptions for hosting major sporting events, such as the 2022 Birmingham Commonwealth games, the 2023 Women’s Finalissima, the 2024 UEFA champions league final and the 2024 world athletics indoor championships. I should point out that tax exemptions of this type are reserved for only the most exceptional events. I am hopeful—indeed, confident—that the Committee will agree that this event meets that criterion.
The exemption covers income directly related to participating in the Glasgow 2026 Commonwealth games as well as income arising in relation to services and duties performed specifically for the event. Being exposed to taxes in two countries is administratively complex and consideration would also have to be given to matters such as withholding taxes, completing self-assessment tax returns and the relevant double taxation treaties.
The income tax exemptions for the Glasgow 2026 Commonwealth games further support the Government’s commitment to make the UK a global destination for world-class sport. I commend the regulations to the Committee.
James Wild (North West Norfolk) (Con)
The Exchequer Secretary played his own part in inspiring the next generation of athletes on social media during the recess.
The regulations provide a time-limited exemption from income tax for certain non-UK residents working on the Glasgow 2026 Commonwealth games. I am looking forward to the games and to our home athletes bringing home many medals. I also recognise the benefits that such sporting events will bring to Glasgow and more widely.
The Opposition have been pushing the Government to recognise the principle that underlies the regulations: the importance of making the UK attractive to globally mobile individuals. Sadly, more broadly, the Government have targeted such individuals through higher taxes. I therefore hope that the regulations represent a change of direction.
I have a few points to raise with the Exchequer Secretary. First, on scope, the regulations apply to “accredited persons”: individuals issued with an accreditation badge by Glasgow 2026 Ltd. Estimates say that that will impact around 9,000 non-UK residents. Will he set out what discussions His Majesty’s Revenue and Customs has had with or what guidance has been issued to Glasgow 2026 Ltd on who should or should not be accredited for those purposes?
Secondly, on timing, the games run from 23 July to 2 August. Why does the exemption run from 16 July to 4 August rather than matching the dates of the games?
Thirdly, on avoidance, because trading and professional profits are covered, there could be an incentive to structure contracts so that income is characterised as games-related and performed in the UK within that exemption window. How has HMRC addressed that risk?
We will not oppose the regulations, but I would appreciate the Exchequer Secretary’s response to my three questions.
John Grady (Glasgow East) (Lab)
It is a pleasure to serve under your chairship, Sir Alec.
Our relationship with the people and countries of the Commonwealth is something to be cherished and developed. The Commonwealth games in my city is an opportunity to do that.
The regulations help enable the Commonwealth games to take place in Glasgow this year, and, as a Glasgow MP, I welcome the Government’s support. My seat has two of the venues: the Sir Chris Hoy Velodrome, and the Tollcross International Swimming Centre. The exemption is essential to enable the games to happen in my constituency.
The Glasgow games in 2014 were a great success for the economic development of our city, and I am sure that the Glasgow 2026 games will be, too. That is because my home, Glasgow, is a city of warmth and hospitality.
As set out in the Commonwealth charter, the core Commonwealth principles include mutual respect and inclusiveness. The games are an opportunity to reaffirm those principles. A good place to start is by expressing our immense gratitude to the people from the Commonwealth who have made their homes here. I also want to thank the sportspeople who have fought against racism. Examples include Craig Brown and Alex McLeish in Scotland, as well as Sunderland’s Gary Bennett and Newcastle’s Shaka Hislop. They have embodied our shared values of mutual respect and inclusiveness.
I thank the Exchequer Secretary for introducing the regulations, which are an important part of the mosaic of activities that are needed to ensure that the Commonwealth games in my brilliant home city will be a success.
Steve Darling (Torbay) (LD)
It is a pleasure to serve under your chairmanship, Sir Alec.
Although my constituency is almost as far as it possible to get from Glasgow, I know that my constituents will enjoy the games. As the Exchequer Secretary said, they should be an inspiration to us all, especially young people, and a celebration of the Commonwealth and the way in which diversity makes it stronger.
However, I come to the main beef. Are the regulations the sole beef in the burger of encouraging people to participate? What other financial inducements have the Government put on the table to ensure the success of the games?
Dan Tomlinson
I thank all Members for their contributions and questions. It is fantastic that the city of my hon. Friend the Member for Glasgow East will host the Commonwealth games again. They were a great success for the country and for countries throughout the Commonwealth last time they were held in that great city. I know that it has had some difficult times lately with the fire at Glasgow Central station. I hope that this summer, we can all enjoy the best that Glasgow has to offer, including the sporting events in Glasgow East.
I thank the shadow Exchequer Secretary for reminding the Committee that he stands up as a thinking man’s Al Carns.
Dan Tomlinson
I spent four weeks deliberating on whether to put out that video and I deeply regret the decision to do so.
As ever, the shadow Exchequer Secretary asked important and pertinent questions. He asked why the dates do not align with those of the games. That is because many athletes will not be here for those precise dates. Those involved with the sporting teams or with the relevant accreditation may come here in the previous days and weeks. The dates have been set in the usual way; it is typical practice.
On the hon. Gentleman’s first question about accreditation, the Department for Culture, Media and Sport will work closely with the Commonwealth games on that, as they have done for previous sporting events, to ensure that the right people are accredited. He also asked whether HMRC will ensure that income is treated and taxed correctly and appropriately. I give the previous Government credit for making progress on closing the tax gap. We are glad to continue with that. The tax gap has fallen this year and is set to fall further over the rest of the Parliament. We will of course keep a weather eye on the activities of those coming here.
The hon. Member for Torbay asked an important question about what else the Government are doing to support the Commonwealth games. Last June, we pledged to spend at least £400 million on grassroots facilities over the next four years to support those who live in close proximity to the games. I hope that those who are considering competing will not just think about whether they have to pay tax in two countries or the double taxation treaties, but will find an inducement in participating and celebrating their skills, training and hard work. Perhaps the joy of a medal will also be an inducement.
Again, I thank Members for their contributions and commend the regulations to the Committee.
Question put and agreed to