Gibraltar: Increased relief, grants to businesses for January 2021 (COVID-19)
Gibraltar: Increased relief, grants to businesses
Gibraltar’s government has put together a package of additional relief measures for businesses affected by the latest lockdown measures announced on 27 December 2020 and more generally to increase support provided to others in response to the coronavirus (COVID-19) pandemic.
The new relief measures are provided following relief measures announced in December 2020. Read TaxNewsFlash
Increased COVID-19 grants for January 2021
- The grant payment for businesses closed during the lockdown will be increased from 30% to 100% for the month of January 2021 (only). Businesses in receipt of this grant payment must honour the contracted salary payments or those payments provided for under the initial COVID-19 measures as announced for those on zero-hour or agency contracts, up to a maximum of £1,155. However, any surplus can be retained by the business on the basis that the grant is solely and exclusively used for meeting ongoing business expenses.
- For those businesses not required to close and that remain able to operate, the January 2021 grant will automatically increase from 30% to 40%.
- PAYE (on earnings up to £1,155) and social insurance will be waived for the month of January 2021 only (businesses will be required to confirm that they are up-to-date with their tax and social insurance obligations).
Businesses that were required to close and others currently in receipt of previous grants will receive an email inviting them to submit a claim by completing the appropriate form that will be attached to that email. Catering and restaurant businesses are also able to apply. The deadline for receipt of these applications is 15 January 2021.
The scheme is also open to self-employed people who are working within any of the sectors closed by the government. New businesses (including newly registered, self-employed persons) from sectors that have not previously received grants are also invited to apply by requesting the claim form at firstname.lastname@example.org.
The government is hopeful that businesses will be able to reopen by 31 January 2021, at which time all grants will revert to 30% and these 30% grant payments will continue until 31 March 2021.
Other relief measures concern:
- Rental discount scheme: For the month of January 2021 only, the rental discount scheme will be increased from 25% to 50% for private tenancies. This is expected to be a temporary increase.
- Waiver of rates for void properties: A rate waiver will be introduced for any business premises that are vacant and unoccupied from 1 January 2021 to 31 December 2021. Applications to claim this relief are to be filed with the Valuation Officer at LPS’s Rates Department.
- Loan and mortgage repayments: The government will also ask lenders to work “positively” with any borrower who might need a one-month repayment holiday in respect of business loans, mortgages or other borrowings.
For more information, contact a KPMG tax professional in Gibraltar:
Darren Anton | +350 200 48600 | email@example.com
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