Covid Grant Income & VAT

Hi A furnished holiday let company received Grants during covid to assist with the fact that the buisness had to remain closed (Restart Grants & Omicron Hospitality & Leisure Grants). Is this grant income deemed to be VAT taxable turnover for purposes of determining whether VAT registration limits have been breached ? I have read the guidance but am not sure if these grants are classed as a supply or not as they effectively replaced the rental income that would otherwise have been received.

"Hi,

If you have received grants then these would normally be outside the scope of VAT as there is no supply for a consideration. Please see the guidance below:

VATSC06311 - Consideration: Payments that are not Consideration: Grants: What is a grant?

Thank you.