Taxation of Coronavirus Grants


Government has provided financial support during the Coronavirus lockdown which many clubs in 2020 have benefitted from. This has included a business rates holiday for 2020/21,Coronavirus business support grants (i.e. Retail, Hospitality and Leisure Grant Fund and Small Business Grant Fund) provided through local authorities, grants to support employees wages under the Coronavirus Job Retention Scheme (CJRS)and the Coronavirus Job Retention Bonus (CJRB).

The Finance Act 2020 has introduced legislation to tax business support grants, CJRS and CJRB grants. This charge applies where the club is carrying on a business which includes atrade or property business.

Only a portion of the grant will be taxable where the club is carrying on non-business activities which are generally regarded by HMRC as including the provision of services to members in return for their fees and subscriptions.

The apportionment between the clubs business and non-business activities will be made on a just and reasonable basis. HMRC is due to publish guidance on the detail of the taxation of the grants shortly, as soon as this available we will update our Corporation Tax Guidance to reflect how the taxation is intended to work.

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