Charity retailers can now access up to an additional £9m in grant funding if certain criteria are met. This is due to the government lifting the allowance limits previously capped by an outdated EU ruling. The Charity Retail Association and Charity Tax Group had correctly pointed out that charity shops were being denied access to lockdown grants due to old EU state aid rules being applied (despite the UK no longer being bound by them). This resulted in confusion regarding the grant limits with the situation not helped by a lack of communication from the government and local authorities.
Now that the situation has been cleared up, charities with substantial leisure, hospitality, and retail property portfolios, including charity shops, should be able to access a business grant worth up to £1.9m, increased from the previous limit of around £860,000.
Charities that meet additional criteria (for example a 30% reduction in turnover) may be eligible for an additional £9m, increased from around £2.6m.
The deadline for the first application is 31 March 2021. Further information containing guidance, criteria, and deadlines can be found here.
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