PARLIAMENTARY WRITTEN QUESTION
Business: Coronavirus (2 November 2020)

To ask the Chancellor of the Exchequer, whether covid-19 grants allocated to businesses will be classed as income for the 2020-21 financial year irrespective of when those moneys were received.

Asked by:
Mr Richard Holden (Conservative)

Grant income received by a business is taxable. COVID-19 grants allocated to businesses should be considered by businesses in line with standard accounting principles, and treated as income in the appropriate accounting period. Only businesses which make an overall profit once grant income is included will be subject to tax.

Answered by:
Jesse Norman (Conservative)
5 November 2020