2021 No. 92

Corporation Tax
Income Tax

The Taxation of Coronavirus Support Payments Regulations 2021

Made

Laid before the House of Commons

Coming into force

The Treasury, in exercise of the powers conferred by section 106(2)(f), (3) and (4) of the Finance Act 20201, makes the following Regulations:

Citation, commencement and effect1

1

These Regulations may be cited as the Taxation of Coronavirus Support Payments Regulations 2021 and come into force on 22nd February 2021.

2

These Regulations have effect in relation to coronavirus support payments made before and after the making of these Regulations.

Specified schemes2

The following schemes are specified under section 106 of the Finance Act 2020—

a

the Test and Trace Support Payment Scheme2 in England,

b

the Self-Isolation Support Grant3 in Scotland, and

c

the Self-Isolation Support Scheme4 in Wales.

Application of Schedule 16 to the Finance Act 20203

1

Paragraph 3 of Schedule 16 to the Finance Act 2020 applies to a coronavirus business support grant scheme and a scheme specified under regulation 2 as if—

a

in sub-paragraph (2), after “scheme” there were inserted “, a coronavirus business support grant scheme or a scheme specified under section 106(2)(f) by the Taxation of Coronavirus Support Payments Regulations 2021”,

b

in sub-paragraph (5), after “scheme” there were inserted “, a coronavirus business support grant or a scheme specified under section 106(2)(f) by the Taxation of Coronavirus Support Payments Regulations 2021”.

2

Paragraph 8(2) of Schedule 16 to the Finance Act 2020 applies to a scheme specified under regulation 2 as if—

a

for “or the”, there were substituted “, the”, and

b

at the end, there were inserted “or a scheme specified under section 106(2)(f) by the Taxation of Coronavirus Support Payments Regulations 2021”.

Rebecca HarrisMaggie ThroupTwo of the Lords Commissioners of Her Majesty’s Treasury
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision in relation to the taxation of coronavirus support payments.

Authority for the retrospective effect is provided by section 106(4) of the Finance Act 2020.

Regulation 2 specifies three schemes (under which a public authority makes a payment to a person who has been required to self-isolate due to coronavirus) so that payments made under such a scheme will be coronavirus support payments; Schedule 16 to the Finance Act 2020 makes provision about the taxation of coronavirus support payments.

Regulation 3 makes provision about the application of Schedule 16.

A modification is made to paragraph 3 to Schedule 16 to ensure that payments under schemes specified by these Regulations or a coronavirus business support grant scheme are referable to the business of the recipient of the payment and are taxed appropriately where the recipient is a partner in a partnership.

A modification is made to paragraph 8 of Schedule 16 to exclude the application of that provision in relation to a payment under schemes specified by these Regulations, paragraph 8 would otherwise impose a tax charge if the recipient was not entitled to the payment.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-andimpact-notes-tiins.