Explanatory note

These Regulations amend the Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I 1987/530) (“the principal Regulations”) and come into force on 1st July 2012.

The principal Regulations provide for the deduction of sums representing income tax (“the tax payment”) where certain payments or transfers are made to non-UK resident entertainers, sportsmen and sportswomen, or to a person who is connected to them, or an associate of them, in connection with activities performed in the United Kingdom. Regulation 4(3)(a) of the principal Regulations provides that where such payments or transfers for a tax year do not together exceed £1,000 the tax payment shall be a nil amount. Regulation 4(3)(b) of the principal Regulations provides that such payments and transfers made by any person who is connected with, or is an associate of any person who makes a payment or transfer to a non-UK resident entertainer, sportsman or sportswoman shall together be treated as constituting a single payment in determining whether they exceed £1,000.

Regulation 2 of these regulations amends regulation 4(3) of the principal Regulations by substituting for the figure of £1,000 the amount of the personal allowance for income tax for the year in which the payment or transfer is made. The personal allowance for income tax is specified in section 35(1) of the Income Tax Act 2007 (c. 3).

A Tax Information and Impact Note covering this instrument will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.