Closed consultation

Draft legislation: Taxation of coronavirus (COVID-19) support payments

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Summary

We welcome views on draft legislation to introduce rules on the taxation of coronavirus (COVID-19) business support grants.

This consultation ran from
to

Consultation description

We are inviting views on the technical effectiveness of this measure, which ensures that grants within the legislation are subject to tax. These grants are treated as income where the business is within the scope of either Income Tax or Corporation Tax.

The measure provides for a delegated power to make provision about its application to a particular grant scheme.

It will also give HM Revenue and Customs (HMRC) powers to recover payments to which recipients were not entitled to under the Self-Employment Income Support Scheme or the Coronavirus Job Retention Scheme payment or where a Coronavirus Job Retention Scheme payment has not been used to pay employees, make pensions contributions, pay PAYE or National Insurance contributions. HMRC will be able to do this by raising Income Tax assessments or requiring taxpayers to submit a Self Assessment tax return.

HMRC will also be able to charge a penalty in cases of deliberate non-compliance. Further provisions may be included in the final new clause and schedule when tabled.

The measure does not legislate for the operation of any of the COVID-19 support schemes.

On this page you can read:

  • the draft clause
  • the draft explanatory note
  • a draft tax information and impact note

Documents

Taxation of coronavirus support payments - draft new clause

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Taxation of coronavirus support payments - draft explanatory note

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Taxation of coronavirus support payments - draft tax information and impact note (TIIN)

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If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Updates to this page

Published 29 May 2020

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