Tax treatment of Restart Grants in a limited company

[Brendan Burgess]

A business owner has told me that these are not "taxable" but that wage subsidies are.

I had assumed that they were income just like any other income in the company

In simple terms, forgetting about capital allowances and depreciation, he says it should be like this:

Brendan

 

[Brendan Burgess]

The only reference I can find is in the Revenue's guide to the EWSS

For the purposes of qualifying for the EWSS and on a without prejudice basis, Revenue
regards the recently announced Restart Grant as capital in nature and therefore not
included in the definition of turnover for the purposes of assessing employer eligibility for
EWSS.

That seems to support my friend's interpretation.

Brendan

 

[Gordon Gekko]

Hi Brendan,

It’s not something that I know much about to be honest.

But I’d draw comfort from the Revenue guidance as you say and I’d happily rely on it if I was in his shoes.

Gordon

 

[Opal**]

From chartered accountants.ie.....
For tax purposes other than the EWSS eligibility test, it is necessary to consider what the grant was expended on to establish if the grant is revenue or capital in nature and apply the appropriate tax treatment accordingly.

Depending on what the Restart grant is used for will determine if it is treated as revenue for ct purposes. For EWSS eligibility only, it is excluded from revenue. Can’t post the link.