The Government has updated its guidance on the cash grants for the Retail, Hospitality and Leisure (RHL) sector and confirms that:
‘Charities, which would otherwise meet this criteria but whose bill for 11 March had been reduced to nil by a local discretionary award should still be considered to be eligible for the RHL grant.’
Eligible businesses in these sectors with a property that has a rateable value of over £15,000 and less than £51,000 will receive a grant of £25,000. The Charity Tax Group (CTG) explains:
‘Based on the HMRC guidance on the Expanded Retail Discount, the hereditaments operated by charities are likely to include: charity shops, museums, galleries, historic houses, sport charity facilities, theatres, public halls, and clubhouses, clubs and institutions.’
Local Authorities will issue these grants directly, so there is no need to claim unless you do not think the Local Authority is aware of your eligibility for the grants.
- You can read the government guidance here (updated 1 April 2020).
- Further information is available on the government’s Business Support website.
- Read the full article from the Charity Tax Group.
The sector is still hopeful that the government will provide further funding for charities and we will continue to keep you updated of any further information published. In the meantime, if you are concerned about cash flow and solvency, here are some resources to help:
- Bates Well: Charity Governance and Insolvency, a Coronavirus Guide
- Charity Commission CC12: Managing a Charity’s Finances; planning, managing difficulties and insolvency
- Contact email@example.com.