The Government has created certain grants for retail, hospitality and leisure businesses. The Scheme was expanded on 2nd May 2020 when the Government announced an additional 5% uplift to the £12.33 billion funding originally announced, for the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF). The additional fund is aimed at small businesses with ongoing fixed property-related costs.
"Businesses must be small, under 50 employees, and they must also be able to demonstrate that they have seen a significant drop of income due to Coronavirus restriction measures.
There will be three levels of grant payments. The maximum will be £25,000. There will also be grants of £10,000. local authorities will have discretion to make payments of any amount under £10,000. It will be for councils to adapt this approach to local circumstances."
These are the Scheme details:
You are eligible for the grant if:
Properties qualifying for grants must be occupied wholly or mainly as:
Access to grants
Eligible businesses will be contacted by their local authorities.
Grants to be paid to
The person who according to the billing authority’s records was the ratepayer of the qualifying property 11th March 2020
How do Local Authorities administer the scheme (highlights from central Government guidance to local authorities)
Read the full Guidance here.
Are the grants taxable?
Yes, we understand that they are taxable in the hands of the recipients.
Businesses unable to access grants
Many small businesses are not liable for business rates because they don’t occupy a ‘hereditament’ (a property on the rating list which is liable for business rates). These businesses can’t access the new grant scheme.
This Insight sets out the technical background to business rates and valuation, to explain why some small businesses can and can’t access the scheme.
Coronavirus: Businesses without premises and the Small Business Grant Scheme- House of Commons Library
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