Can a Trust apply for grant?

HeatherAlex

Our family holiday cottage is owned by a discretionary Trust, which has filed tax returns for years. It is run as a furnished holiday let.

It is treated by the council as an odd mix of private & business - the Trust pays council tax but also has to pay for a commercial waste contract. It is not registered with the council as a business which is why it does not pay business rates.

Needless to say, travel restrictions have played havoc with bookings.

Is the Trust able to apply for coronavirus grants or other financial help?

Jeremy535897

Only ratepayers on the rating list at 11 March 2020 qualify for the mandatory property based grants. Councils also have a discretionary fund that may help in certain circumstances (for example businesses that pay a rates inclusive rent to their landlord). The trustees could apply to their local council for a discretionary grant, but I would not be hopeful.

In circumstances where the property, if rated, would probably be eligible for small business rate relief at 100%, about the only significant advantage of paying council tax is not having to pay for rubbish collection. Apparently the trustees don't even get that benefit, which begs the question as to why the trustees have not asked for the property to be rated. Do they own more than one such property? If it is a proper holiday let business, it should be rated. If the beneficiaries of the trust are the ones who habitually stay there, it is not (and it would be unrealistic to expect any sort of grant).

HeatherAlex

Just the one property, and trustees/beneficiaries pay commercial rate if they stay there. Looks like we will be talking to council about getting it rated... Thanks.

lincroft1710

Whether it is liable for Non Domestic Rates as opposed to Council Tax will depend on how many days in a year it is available to let.