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Posted Sat, 06 Feb 2021 00:19:14 GMT by Susana Shaw
Hello, I am on tax credits and this year received a Small Business Grant Relief (SBGR) I am filling in my tax return and have been told that this grant should be added as capital and disregarded. Is this so? Do I have have to notify tax credits of this grant as income? I am very confused. Thanks
Posted Tue, 09 Feb 2021 15:56:18 GMT by HMRC Admin 5

The grant is taxable income and will need to be included on your tax return.
You will need to contact tax credits to query if you need to notify them of this income.

Thank You.
Posted Tue, 09 Feb 2021 16:24:59 GMT by Susana Shaw
Thank you so much for your reply. I have contacted tax credits and they said they do not know whether it is included as they have not come across this question before? They told me to contact the self assessment team who also said they do not know. What do I do for tax credits? I don’t want to give them incorrect figures and then it messes up next years tax credits. Thank you
Posted Wed, 10 Feb 2021 13:57:10 GMT by HMRC Admin 5
Hello Susana.

This is not an Income Tax question and should be referred to Tax Credit helpline

Thank You.
Posted Wed, 10 Feb 2021 17:17:14 GMT by Susana Shaw
Thank you. With regards Income tax, in what section of my tax return should I include the income from the grants received? Will there be a separate box in this years tax return for the grants issued by both the government and the council discretionary business grants? Or do we just add them all up and add them onto the gross income box? I ask as I am not sure if the discretionary business grants are classed as capital or income? Thank you
Posted Fri, 12 Feb 2021 09:16:44 GMT by HMRC Admin 4
It has not been confirmed yet to where this information will need to be declared on the tax return.
Posted Wed, 28 Jul 2021 20:22:49 GMT by karenm
Hi , I would also like to know if i have to include the Small Business Grant fund (SBBR) that i received (I'm self employed with business property) and the Local Restrictions Support Grant in my working tax credits and my self assessment. Thank you.
Posted Mon, 09 Aug 2021 15:12:17 GMT by HMRC Admin 19

The Small Business Grant Relief is to be treated as income for tax credits purposes.

If the Local Restrictions Support Grant is the same as Covid Local Support Grant (England and for similar Devolved Administration schemes) this is not taken into account.

Please see guidance notes here which indicate that any HMRC coronavirus support grant or local authority grants need to be included on your Self Assessment return: 
Self-employment (full) notes

Thank you.


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