To ask the Secretary of State for Digital, Culture, Media and Sport, whether financial support grants provided by the Arts Council during the covid-19 outbreak are treated as taxable income.
9 June 2020
The Arts Council always recommends that grant recipients refer to HMRC and/or an independent advisor for advice that takes full account of their personal circumstances for tax. In general, as per the agreement reached between the Inland Revenue and the Arts Council of Great Britain in 1978, which we understand still applies, it is the Arts Council’s understanding that:
Grants awarded to support people to take time out to develop and explore their artistic and cultural practice (such as those grants recently made under the Arts Council’s Emergency Response Fund for Individuals) should not be treated as taxable income.
Grants awarded to support the delivery of a specific project or projects would be treated as taxable income.’