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Christmas Support Payment for wet-led pubs

Wet Pubs

The Government has announced that Local Authorities under Tier 2 or Tier 3 restrictions for all or part of the period between 2 and 29 December 2020 will pay a £1,000 flat-rate grant to wet-led pubs.

For the purposes of this grant, a wet-led pub is defined as a pub that derives less than 50% of its income from sales of food.

The Local Authority may request that pubs provide accounting evidence that they derive under 50% of their income from food sales to determine that the pub is wet-led. These accounts should be dated no later than 11 March 2020 (covering a period when trade was not affected by Covid-19).

Businesses established after 11 March 2020 and before 1 December will still be eligible for this grant and may be asked to supply accounting evidence that they derive under 50% of their income from food sales covering the period that they have been open.

A qualifying wet-led pub is defined as (in normal circumstances): 

  • open to the general public (not members-only
  • offering free entry (except when occasional entertainment is required) 
  • allowing drinking without requiring food to be consumed 
  • permitting drinks to be purchased at a bar 

It should also: 

  • have been in Tier Two or Tier Three since 2 December 2020
  • be able to provide evidence, if required, that less than 50% of income is from food sales, when the pub was open as usual 
  • been trading on 30 November 2020 (where local restrictions are preceded by national 'lockdown' measures, requiring the closure of businesses that are otherwise eligible, it is accepted that those businesses are still trading). 

Grant income received by a business is taxable. The CSP grant will need to be included as income in the tax return of the business. Only businesses that make an overall profit once grant income is included will be subject to tax.

Exclusions

Pubs that derive over 50% of their income from food sales will not be eligible to receive funding through this grant scheme.

Businesses in areas moving from Tier 1 to Tier 2 or Tier 3 after 29 December will not be eligible to receive funding.

Businesses that have already received grant payments that equal the maximum levels of State aid permitted under the de minimis, the Covid-19 Temporary State Aid Framework and all other UK schemes under the terms of the European Commission's Temporary Framework will not be eligible to receive funding.

Businesses that are in administration, insolvent or where a striking-off notice has been made, are not eligible for funding under this scheme.

State Aid Regulations

The grants issued to businesses in response to the COVID-19 outbreak are classed as 'state aid.'

State aid is when taxpayer funded resources are used to provide assistance to one or more organisations in a way that gives an advantage over others. 

As part of your application, you will be asked to confirm that your business will not exceed the state aid limits, as set down in law, if the grant is paid.

You will need to confirm how much state aid you have received within the current and previous two financial years. If you are not sure if help you have received qualifies as state aid, you should contact the awarding body or seek independent advice.

For the avoidance of doubt, any grants received from the Council would be considered state aid and you will need to declare these on your form.

You will also be asked to confirm that you are not an 'Undertaking in Distress' (within the meaning of Article 2(18) of the General Block Exemption Regulation) on 31 December 2019).

How Can I Apply

This scheme will close on 29 December 2020. Final applications must be received by the Local Authority by 31 January 2021.

Click Here to Apply

15 December 2020