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Taxation of coronavirus (COVID-19) support payments


Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
tag-icon Coronavirus (COVID-19)

Taxation of coronavirus (COVID-19) support payments


Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
tag-icon Coronavirus (COVID-19)
imgtext

Measures setting out the taxation treatment of coronavirus (COVID-19) support payments were included in FA 2020 and further changes were announced in Budget 2021. For more details of coronavirus support payments, see the What coronavirus (COVID-19) support payments are available? guidance note.

In summary, these measures:

  1. •

    ensure that the grants are treated as income where the business is within the scope of income tax or corporation tax

  2. •

    enable HMRC to recover payments to which the recipient was not in fact entitled, and

  3. •

    enable HMRC to charge a penalty for deliberate non-compliance

For more details, see Simon’s Taxes B2.210A and B2.210B. For HMRC guidance, see BIM40456 onwards.

Which business support grants are within the scope of these provisions?

The provision applies to ‘coronavirus support payments’ (CSP), which include:

  1. •

    the coronavirus job retention scheme (CJRS), see the Coronavirus job retention scheme (CJRS) guidance

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  • 08 Mar 2023 13:31

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