FAQs - Support grants for businesses required to close under Tier 3 local area restrictions
To reduce social contact, the Government ordered certain businesses and venues to close or restrict how they provide goods and services from the start of tier 3 restriction that began on 2 December 2020. These FAQ’s relate to those businesses that have been required to close under Tier 3 restrictions.
Affected businesses can now apply for a further fixed grant called the Local Restrictions Support Grant (closed) of £667, £1,000 or £1,500 for each 14 day tier three closure period that began on 2 December, with the grant amount depending on the rateable value of the premises.
Local Restrictions Support Grant (Closed) Effective 2 December 2020 onwards
Q: Which businesses are required to close under Tier 3?
Hospitality settings, such as bars, pubs, cafes, restaurants, and social clubs must close except for takeaway, delivery and click and collect services. This includes restaurants and bars within hotels or member’s clubs.
Accommodation such as hotels, B&Bs, campsites, holiday lets and guest houses will qualify as leisure travel is banned in Tier 3.
Indoor entertainment and visitor attractions together with conference centres and exhibition halls
Please see https://www.gov.uk/guidance/tier-3-very-high-alert#businesses-and-venues for further guidance
Q: Who will receive the grant?
The person who according to the billing authority’s records was the ratepayer in respect of the hereditament on the date of the first full day of local restrictions is eligible for the grant provided the business was required to close for at least 14 days.
Where the Council has reason to believe that the information that they hold about the ratepayer on the first full day of the local restrictions is inaccurate they may withhold or recover the grant and take reasonable steps to identify the correct ratepayer. The grant is for the ratepayer and may be liable for recovery if the recipient was not the ratepayer on the eligible day.
Q: If I have had to close how much grant will I receive?
The grant will be based on the rateable value of the property on the first full day of tier 3 restrictions.
If your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of £667 for each 14 day period your business is closed.
If your business has a property with a rateable value over £15,000 and less than £51,000, you may be eligible for a cash grant of £1,000 for each 14 day period your business is closed.
If your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of £1,500 for each 14 day period your business is closed.
The grant will be extended to cover each additional 14-day period of closure. If your business is closed for 28 days, or 2 payment cycles, it will receive £1,334, £2,000 or £3,000, depending on the rateable value of the property.
Q: How quickly will I receive my Grant?
Subject to the Council being in possession of all the required information/evidence we will aim to pay grants as soon as possible. We will be paying grants in 14-day tranches. Businesses that close in the middle of a payment cycle will not become eligible for the scheme until they enter the next 14-day payment cycle.
Q: When do businesses have to have been trading from in order to be eligible for the Grant?
The business must have been trading the day before restrictions came into force.
Q: Are there any conditions attached to this grant funding?
Recipients of grant funding must comply with all the scheme conditions, including State aid requirements and the provision of information to the Local Authority to support monitoring and assurance. By accepting the grant each recipient confirms that they are compliant with the conditions for the scheme. Businesses will need to notify their Local Authority if they no longer meet the eligibility criteria for additional grants at any point in any local restrictions period, for example, if they become insolvent.
If a Local Authority subsequently finds that this self-declaration is incorrect, it will be able to take action and the business would be liable to pay the money back.
Q: Are grants made under the scheme subject to tax?
Grant income received by a business is taxable, therefore the Support Grant will be subject to tax. Only businesses that make an overall profit once grant income is included will be subject to tax.
Q: Do I have a right of appeal if my grant claim is refused?
Q: Do I qualify for the Grant if I am not required to close but have chosen to do so?
Q: Are gyms and leisure centres eligible to receive grants through this scheme?
No, gyms and leisure centres under the new LRSG (Closed) are not eligible because they are not required to close under the new Tier system.
Q: Are businesses that are not required to close but are unable to continue operating due to social distancing rules eligible for LRSG (Closed)?
These businesses will not be eligible for LRSG (Closed) but they may be eligible for the LRSG (Open) because they have been severely impacted by local restrictions.
Q My business has been severely affected as it is a main supplier to businesses forced to close. Am I entitled to claim anything?
These businesses will not be eligible for LRSG (Closed) as they have not had to close but they may be eligible for the LRSG (Open) because they have been severely impacted by local restrictions.
How do I apply?
If you have previously made a claim for a business support grant under the National Restrictions Grant Scheme (businesses that were forced to close during the national lockdown 5/11/20 to 2/12/20) and not the discretionary scheme you have the option of pre-populating your claim with the details already provided by choosing the option ‘prefill your application’. However you will need to resubmit your bank details which must match those account details previously supplied.
In the unlikely event that you receive an error message when completing your claim please email firstname.lastname@example.org