The International Olympics Committee have reached agreement with HMRC that it suspends its normal tax regime for those people coming to the UK to compete in the games. Therefore payments to foreign competitors participating in the London 2012 Olympic Games and Paralympics will not be subject to UK tax provided they fall within the terms of the Special Exemption. This includes payments under sponsorship or endorsement contracts entered into before the Games started. This special exemption will also be extended to foreign Olympic officials, journalists, broadcasters and other foreign workers engaged in the games but ii is unclear whether or not this extends to entertainers. The exempt season will run from the end of March 2012 to the first week in November 2012.

The normal UK rule is that if a foreign sportsperson comes here to compete HMRC would subject part of any earnings to UK income tax.