Under the influence of coronavirus, there are three schemes under which a public authority makes a payment to a person who has been required to self-isolate due to coronavirus. The Taxation of Coronavirus Support Payments Regulations 2021 make provision in relation to the taxation of coronavirus support payments. These regulations come into force on 22 February 2021.
The three schemes include:
- the Test and Trace Support Payment Scheme in England,
- the Self-Isolation Support Grant in Scotland, and
- he Self-Isolation Support Scheme in Wales.
Modifications are made 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.
- 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.
The Taxation of Coronavirus Support Payments Regulations 2021 published on 1 February 2021