In advance of the Finalissima football (soccer) match between Italy and Argentina, being played at Wembley Stadium, London, on 1 June 2022, Her Majesty's Revenue and Customs (HMRC) has proposed exempting nonresidents of the U.K. accredited by the Union of European Football Associations (UEFA) for the purposes of playing in the match from liability for U.K. income tax. The regulations would come into force on 27 May 2022.
The exemption applies to income received by non-U.K. resident accredited players and officials and other non-U.K. resident accredited individuals for relevant duties or services performed in connection with the Finalissima football match provided that the income arises with respect to duties or services performed between 28 May and 2 June 2022, inclusive. Payers of such income will not be subject to the withholding tax obligations that would otherwise apply.
The proposed exemption includes individuals whose tax residence is split between the U.K. and another country in tax year 2022 to 2023 where such income arises in the part of the year when they are not U.K.-resident. Football competitors who are residents of the U.K. are not eligible for the exemption.
HMRC does not expect this measure to have significant economic impact. The agency explained that the government is committed to making the U.K. an attractive location to host international world-class sporting events and the income tax exemption furthers this objective.
Edward Kowalski, Esq., is Manager, Payroll Information Resources, for the American Payroll Association