2021 Uefa Super Cup) Regulations 2021

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2021 Uefa Super Cup) Regulations 2021 PARLIAMENTARY DEBATES HOUSE OF COMMONS OFFICIAL REPORT Third Delegated Legislation Committee DRAFT MAJOR SPORTING EVENTS (INCOME TAX EXEMPTION) (2021 UEFA SUPER CUP) REGULATIONS 2021 Monday 19 July 2021 No proofs can be supplied. Corrections that Members suggest for the final version of the report should be clearly marked in a copy of the report—not telephoned—and must be received in the Editor’s Room, House of Commons, not later than Friday 23 July 2021 © Parliamentary Copyright House of Commons 2021 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 1 Third Delegated 19 JULY 2021 Legislation Committee 2 The Committee consisted of the following Members: Chair: JAMES GRAY Antoniazzi, Tonia (Gower) (Lab) Pursglove, Tom (Corby) (Con) Caulfield, Maria (Lewes) (Con) † Rutley, David (Lord Commissioner of Her Majesty’s Coutinho, Claire (East Surrey) (Con) Treasury) † Duguid, David (Banff and Buchan) (Con) Sultana, Zarah (Coventry South) (Lab) Jones, Mr Marcus (Vice-Chamberlain of Her Majesty’s Thomson, Richard (Gordon) (SNP) Household) Tomlinson, Michael (Lord Commissioner of Her Long Bailey, Rebecca (Salford and Eccles) (Lab) Majesty’s Treasury) Mak, Alan (Lord Commissioner of Her Majesty’s Twigg, Derek (Halton) (Lab) Treasury) † Twist, Liz (Blaydon) (Lab) Morris, James (Lord Commissioner of Her Majesty’s Treasury) Joanna Dodd, Committee Clerk † Murray, James (Ealing North) (Lab/Co-op) † Norman, Jesse (Financial Secretary to the Treasury) † attended the Committee 3 Third Delegated HOUSE OF COMMONS Legislation Committee 4 2017 world athletics championships and, of course, the Third Delegated Legislation 2020 UEFA European football championship. As that Committee list illustrates, a tax exemption is reserved for only the top sporting events, and any decisions are made case by case. Monday 19 July 2021 To be considered for a tax exemption, an event must satisfy three policy conditions: it must demonstrate the highest level of world sport; it must be internationally [JAMES GRAY in the Chair] mobile; and the granting of an exemption must be a necessary condition of a bid to host the event. I hope Draft Major Sporting Events (Income Tax the Committee agrees that it is consistent with Government Exemption) (2021 UEFA Super Cup) policy to provide a similar exemption now for the Regulations 2021 UEFA super cup game. The statutory instrument makes use of the powers 6 pm introduced in the Finance Act 2014 to provide a tax exemption through secondary legislation. The exemption James Murray (Ealing North) (Lab/Co-op): On a from UK income tax will apply to non-resident players, point of order, Mr Gray. In the context of today’s officials and individuals designated by UEFA on income extraordinary weather,I am afraid that I have inadvertently earned in connection with the super cup match. The left my jacket in my office. In order not to delay the exemption will run from 10 to 12 August 2021. Committee, do I have your permission to proceed without I conclude by acknowledging that the past 18 months my jacket? have been difficult for sport. The regulations will help to support the sector and provide a welcome boost for The Chair: Being a very old-fashioned bloke, I entirely Northern Ireland. disapprove, but on this particular occasion, I am happy to allow the hon. Gentleman to remain improperly 6.4 pm dressed. I am grateful to him for his courtesy in raising James Murray: Thank you, Mr Gray, for the chance the matter with the Committee. to set out the Opposition’s position on the statutory instrument, despite my present attire. The Financial Secretary to the Treasury (Jesse Norman): The Chair: I will never live this one down. I beg to move, That the Committee has considered the draft Major Sporting James Murray: Neither will I. As we have heard, the Events (Income Tax Exemption) (2021 UEFASuper Cup) Regulations instrument will remove income tax liability from accredited 2021. persons who are non-resident in the UK but who earn The draft regulations provide an income tax exemption income in the UK arising from work related to the for accredited overseas individuals—however they may UEFA super cup, which is scheduled to take place on be dressed, Mr Gray—who participate in the annual 11 August between Chelsea and the Spanish club Villareal. UEFA super cup football match. The exemption will The football match is due to be held at the Windsor apply to any UK income that a non-UK resident receives Park national stadium in Belfast, and the income tax for playing in the match or for duties and services exemption is valid from 10 to 12 August. Beyond the non- performed in connection with the game. residence condition, accreditation entails that the beneficiary The Committee will be aware of the severe impact of of the tax relief work for, or be contracted by, one of coronavirus on all sporting competitions since March the clubs that are participating in the super cup, UEFA 2020. Numerous large-scale events in this country and or broadcast, commercial or media organisations working around the world have been cancelled or postponed to with UEFA for the purposes of the super cup match. protect public health. It was very good to hear, then, May I start by congratulating the Chelsea team on that the Irish Football Association was successful in winning the Champions League and booking their spot bidding to host the annual UEFA super cup game, in this prestigious cup match? I am sure I speak on which this year features Chelsea, winners of the Champions behalf of all members of the House of Commons—except, League, and Villareal, winners of the Europa League, in perhaps, the hon. Member for Ashfield (Lee Anderson)— Belfast on 11 August. It would be wrong for me to when I put on the record my admiration for and thanks display any partiality about the outcome of that game, to the Chelsea players who represented England at the but Villareal beat my team, Manchester United, in the recent European championships: Mason Mount, Reece final of the Europa League, and we are not at all sore James and Ben Chilwell. I also put on the record how about it. I am sure Members on both sides of the pleased I am that Windsor Park was selected for this Committee will agree that the hosting of such a high- match. It hosted its first match nearly 120 years ago, so profile match will be a further welcome sign that the it is very welcome that this iconic Belfast landmark will UK is returning to a more normal sporting environment. now host such a significant European game. Let me turn to the specific legal changes being made. We will not oppose the statutory instrument because As a fundamental condition of hosting the 2021 UEFA we know the income tax exemption was agreed as a super cup game, the UK is required to provide an condition of the bidding process to host the 2021 UEFA income tax exemption for competitors and officials who super cup match in the UK. In January 2019, the then are not tax resident in this country. In previous years, Financial Secretary to the Treasury, the right hon. the Government have opted to provide statutory tax Member for Central Devon (Mel Stride), confirmed to exemptions for a range of similar sporting competitions, UEFA in writing that all the necessary tax exemptions including the 2017 UEFA Champions League final, the would be given if the Irish Football Association in 5 Third Delegated 19 JULY 2021 Legislation Committee 6 Northern Ireland were awarded the match. We recognise The Government certainly recognise the situation of that that is consistent with the treatment of other world- the people the hon. Gentleman describes. It is important class events, not least the recent final of the Euros to say that although the instrument may not affect Although we will not oppose the instrument, I will them, it certainly affects a wide range of people involved use this opportunity to ask the Minister to set out his in the staging of the event who may not necessarily be view on the low pay often received by those who will not plutocratic or have great incomes, as many footballers benefit from the exemption granted by this statutory do. instrument, but whose contributions are critical to the The hon. Gentleman’s point that people should be organisation and delivery of the event—stewards, bar properly paid is an important one, and it was recognised staff, workers at food kiosks, cleaners and many more by the Government in the way that the last Chancellor besides. It is striking that just four clubs in the premier but two or three—the former right hon. Member for league have committed to the living wage and are accredited Tatton—took specific measures to raise the minimum by the Living Wage Foundation. We know that football wage and support people on the lowest incomes. That clubs are built by their fans and communities, so I has also been reflected in the ways that tax policy has would be grateful if the Minister set out whether he evolved with the raising of the threshold for income tax. agrees that British football clubs owe it to their communities The hon. Gentleman is right to point to the status of to be fair employers and to commit to the living wage. those people and to the situation of people on modest incomes. It is right for the Government to continue to 6.7 pm support those people through the tax system. Although those issues have little direct bearing on the instrument Jesse Norman: I thank the hon.
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