Taxation of Coronavirus Grants


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

The Finance Act 2020 hasintroduced 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 wherethe club is carrying on non�business activities which are generally regarded byHMRC as including the provision of services to members in return for their feesand subscriptions.

The apportionment between the club�s business andnon-business activities will be made on a �just and reasonable� basis. HMRC isdue to publish guidance on the detail of the taxation of the grants shortly, assoon as this available we will update our Corporation Tax Guidance to reflecthow the taxation is intended to work.

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