Yes, CRF grants are taxable

Income tax on Culture Recovery Fund and other emergency grants is due next week – a shock to some following mixed messages from the Government.

Ministers intially said the grants would not be taxable, and HMRC appeared to confirm this after arts professionals questioned an email from Arts Council England suggesting otherwise.

The revenue department later backtracked, adding to the confusion.

The final line from HMRC below:

"Payments made from Arts Council England’s Emergency Response Fund fall into the taxable category if made for the purpose of replacing lost revenue of the claimants.  

"This is similar to the treatment of Self Employment Income Support Scheme payments and other Covid grants which have been made with the purpose of supporting businesses and jobs.”