Covid 19 – National Lockdown –Business Grant Schemes

The Local Restrictions Support Grant (LRSG) supports businesses that were open as usual, providing services in person to customers from their business premises, but which were then required to close due to the National Lockdown. 

It is for businesses that receive a business rate bill for their premises even if you don’t have to make any payment. Businesses that don’t receive a business rate bill may be eligible for support under the Additional Restrictions Grant Fund.

Eligibility

Your business may be eligible if it:

• occupies property for which it receives a business rate bill even if you don’t have to make any payment

• has been mandated to close by Government 

• has been unable to provide its usual in-person customer service from its premises

For example this could include non-essential retail, personal services or cafes/restaurants that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead.

This funding will be provided on a rolling 28-day basis for as long the scheme remains in force.

Some businesses may receive more than one grant where they have more than one eligible hereditament.

What you will get

Businesses occupying properties with a rateable value of exactly £15,000 or under on the date of the commencement of the widespread national restrictions will receive a payment of £1,334 per 28-day qualifying restriction period.

Businesses occupying properties with a rateable value over £15,000 and less than £51,000 on the date of the commencement of the widespread national restrictions will receive a payment of £2,000 per 28-day qualifying restriction period.

Businesses occupying properties with a rateable value of exactly £51,000 or above on the commencement date of the widespread national restrictions, will receive £3,000 per 28-day qualifying restriction period.

• Grants will be based on the rateable value of the property on the first full day of local lockdown restrictions.

Additional Restrictions Grant - Discretionary funding

Test Valley Borough Council will publish details of discretionary funding scheme in the near future 

Exclusions

• businesses which are able to continue to operate during the lockdown because they do not depend on providing direct in-person services from their premises

• businesses that have chosen to close, but have not been required to close as part of a local lockdown

• businesses that are still subject to national closures such as nightclubs (There is a scheme for these properties, see The Local Restrictions Support Grant (Sector)

• businesses that have reached the state aid limit

Payments will be subject to state aid limits as the Local Restrictions Support Grant counts towards state aid. COVID-19 Temporary Framework. The limit for the framework is €800,000.

Tax

Grant income received by a business is taxable. The Local Restrictions Support Grant will need to be included as income in the tax return of the business. Only businesses which make an overall profit once grant income is included will be subject to tax.

Apply here

Businesses that have been required to close due to national restrictions imposed on 23 March 2020

Eligible businesses are:

Nightclubs, dance halls, discotheques, Sexual entertainment venues and hostess bars

Some businesses may receive more than one grant where they have more than one eligible hereditament.

Payments will be made for each 14-day period of closure from 1 November 2020 and will not be backdated. In accordance with this timeline, Test Valley will make payments to eligible businesses every 28 days.

It is possible that as part of future efforts to control the spread of coronavirus, further business property types are closed on an England-wide basis. If so, these businesses will also be eligible for these grants once they have been closed for 14 days.

Businesses occupying properties with a rateable value of exactly £15,000 or under on the date of the commencement of the national restrictions will receive a payment of £667 per 14-day qualifying restriction period.

Businesses occupying properties with a rateable value over £15,000 and less than £51,000 on the date of the commencement of the national restrictions will receive a payment of £1,000 per 14-day qualifying restriction period.

Businesses occupying properties with a rateable value of exactly £51,000 or above on the commencement date of the national restrictions will receive a payment of £1,500 per 14-day qualifying restriction period.

• Grants will be based on the rateable value of the property on the first full day of local lockdown restrictions.

Payments will be subject to state aid limits as the Local Restrictions Support Grant counts towards state aid. COVID-19 Temporary Framework. The limit for the framework is €800,000.

Tax

Grant income received by a business is taxable. The Local Restrictions Support Grant will need to be included as income in the tax return of the business. Only businesses which make an overall profit once grant income is included will be subject to tax.

Some businesses may receive more than one grant where they have more than one eligible hereditament.

Test Valley Borough Council will publish details of discretionary funding scheme in the near future. This scheme will be available to businesses that are not liable to business rates and businesses that have not necessarily been forced to close but have been impacted by the effects of Covid restrictions.