B2.210A Taxation of coronavirus (COVID-19) government support payments
For the latest New Development, see ND.1910, ND.1966.
During the coronavirus (COVID-19) pandemic, the UK government announced a series of measures to support individuals and businesses that are adversely affected by the pandemic. A number of these measures involve the receipt of funds directly from government or local government that are not expected to be paid back, ie grants rather than loans. For more details see Part A8.
Finance Act 2020 includes details of the taxation of these coronavirus support payments (CSPs) and HMRC guidance is at BIM40456.
For details of the recovery provisions for CSPs where schemes have been incorrectly used, see B2.210B.
Scope of taxation of coronavirus support payments (CSPs)
CSPs include payments made at any time under the following schemes1:
• the coronavirus job retention scheme (CJRS), see Division A8.2
• the self-employment income support scheme (SEISS), see A8.101
• a 'coronavirus business support grant scheme', which is defined as schemes under which a public authority makes grants with the object of supporting businesses affected by coronavirus, examples being the small business grant fund, the retail, hospitality and leisure grant fund, the local authority discretionary grants fund and their equivalents in Scotland, Wales and Northern Ireland
• the coronavirus statutory sick pay rebate scheme, see A8.213
• amounts paid under the test and trace support payment scheme and its equivalent in Scotland and Wales, called self-isolation support payments, see A8.103
The definition also allows for the expansion to cover other schemes if and when
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