Hi
We have had payment of the Business Grant regarding the Corvid 19 issues and I was wondering what category I should list it under. Anyone have any ideas? Also does anyone know if this counts as income and if it be subject to Capital Gains Tax?
Need more information. Are you a Ltd company or sole trader?
When you say business grant, do you mean a bank loan under the business interuption scheme. Or do you mean the council have paid you a grant for having a business rates premises?
If you mean it’s a grant in relation to business rate relief then yes it goes in to your turnover as income. It’s a taxable receipt.
If you mean it’s a bank loan then no it does not.
Either way its not subject to capital gains tax. Its subject to either corporation tax or income tax.
We are a limited company and it is the Business Rate relief grant of £10k
In that case yes it’s taxable income subject to corporation tax.
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