New Grants Announced for Businesses Affected by Lockdown

Businesses in England that are required to close down because of government-imposed COVID 19 local lockdown are not entitled to a new grant, the United Kingdom government announced on September 9, 2020, after fresh waves of failures. The businesses can now claim up to £1,500 per property every three weeks they have remained closed.

The grant amount depends on the rateable value of the business premise. The grant can be claimed for each property employed by a business. Smaller firms that have to pay less in property rates will get a lower grant of £1,000 per property every three weeks. A business with a rateable value of £51,000 or above can claim £1,500 for every three weeks. You can claim the grants even if you have leased out your property and some other person is responsible for the business rates.,/p>

However, businesses that are not required to shut down due to local lockdown but their finances are badly hit, can apply to the local authority for an optional grant on similar conditions.

While making the announcement Stephen Barclay, the Chief Secretary to the Treasury said, “the grants provide businesses with a safety net as they temporarily close their doors to help save lives in the local areas.” He adds, “As local economies eventually and carefully re-open after local interventions, our Plan for Jobs is there waiting to help businesses get back on their feet, protect jobs and thrive in the future.”

NOTE: As we see in the case of all government COVID 19 related grants, the payments are taxable, but are kept outside the scope of VAT.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>