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The Treasury has announced that businesses that have had to close because of local lockdowns will be able to claim up to £1,500 for each of their properties every three weeks.

The key condition for any business to be able to claim the new grant is that they’ve had to close due to local COVID-19 restrictions. Larger businesses will receive £1,500 every three weeks they are required to close. Smaller businesses will receive £1,000.

Smaller businesses
If a business occupies premises with a rateable value of less than £51,000 or occupies a property or part of a property subject to an annual rent or mortgage payment of less than £51,000, it will receive £1,000 for every three weeks it is required to close.

Larger businesses
If a business has a rateable value of more than £51,000 or part of a property subject to an annual rent or mortgage payment of more than £51,000, it will receive £1,500.

Payments are triggered when a national decision has been made to close businesses in a geographic area that has a high incidence of COVID-19. That area’s local authority will have the responsibility for distributing the grants and will be able to add further eligibility criteria.

The government also confirmed that local grants to closed businesses will be treated as taxable income. Businesses that are still closed at a national level (e.g. nightclubs) will not be eligible for the grants. 

About the Author

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Martin Johnson

Partner
With expertise in advising family-owned companies on a range of tax, accountancy and business issues, Martin also has an in-depth knowledge of the automotive and property sectors. In addition, he provides advice on inheritance tax planning and wealth management to owner-managed businesses.  Martin leads the firm in developing its expertise in the buy-to-let sector, advising both residential and commercial property owners on relevant tax and legislation issues.   A further element to Martin’s role is to build Torgersens’ relationships with banks, financial advisors and specialists in commercial and employment law to ensure that the firm’s clients have access to market-leading guidance.  

To get in touch please e-mail martin.johnson@torgersens.com.

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