PART 1Income tax, corporation tax and capital gains tax
Coronavirus support payments etc
31Covid-19 support scheme: working households receiving tax credits
1
This section applies to a payment which—
a
is made by Her Majesty's Revenue and Customs in the exercise of a function which they have as a result of a direction given by the Treasury under section 76 of the Coronavirus Act 2020, and
b
is made to a person by reason of the person's receipt of any tax credit specified in the direction on a date so specified.
2
No liability to income tax arises in respect of a payment to which this section applies.
3
But subsection (2) does not prevent the application of paragraph 8 of Schedule 16 to FA 2020 (charge to income tax where person not entitled to coronavirus support payment) in relation to a payment to which this section applies.
32Self-employment income support scheme
1
In section 106 of FA 2020 (taxation of coronavirus support payments), in subsection (3)—
a
after “provision about” insert “
(including provision modifying)
”
;
b
for “(2)(c)” substitute “
(2)(b)
”
.
2
In paragraph 3(3) of Schedule 16 to FA 2020 (self-employment income support scheme payments to be treated as receipts of the tax year 2020-21), for “2020-21” substitute “
in which the payment was received
”
.
3
In paragraph 8 of that Schedule (charge if person not entitled to coronavirus support payment)—
a
in sub-paragraph (3)—
i
in the words before paragraph (a), after “scheme” insert “
or the self-employment income support scheme
”
;
ii
in paragraph (b), before “because” insert “
in the case of a payment made under the coronavirus job retention scheme,
”
;
b
in sub-paragraph (4)(a), after “scheme” insert “
or the self-employment income support scheme
”
.
4
The amendments made by subsections (2) and (3) have effect in relation to coronavirus support payments received on or after 6 April 2021.
5
In this section “coronavirus support payment” has the meaning it has in Schedule 16 to FA 2020 (see section 106(2) and (5) of that Act).
33Deduction where business rates etc repaid
1
This section applies if—
a
a person (“A”) carrying on a business would, but for a coronavirus support arrangement, have incurred a liability to pay a charge to a public authority,
b
an expense incurred in discharging that liability would have been deductible in calculating the profits of the business for the purposes of income tax or corporation tax, and
c
an amount in respect of some or all of that liability is paid to that or any other public authority.
2
In calculating the profits of the business of A for those purposes—
a
a deduction is allowed for the amount paid, and
b
that amount is treated as if it had been paid in the period in which the charge would have been due and payable.
3
No deduction is otherwise allowed for the amount paid in calculating the profits of the business of any person for those purposes (including where the amount was paid by a person other than A).
4
For the purposes of this section “coronavirus support arrangement” means an arrangement where—
a
a liability in respect of non-domestic rates, or
b
such other liability in respect of a charge payable to a public authority as may be specified in regulations made by the Treasury,
is waived, or reduced, for purposes connected with the provision of support to businesses in connection with coronavirus.
5
Regulations under subsection (4)(b) may have retrospective effect.
6
In this section “coronavirus” has the meaning it has in the Coronavirus Act 2020 (see section 1 of that Act).
7
This section has effect in relation to payments whether made before or after the passing of this Act.