The Arts Councils provide financial support through a variety of
awards, bursaries and grants, to writers, artists, actors and other
creative artists.
The tax treatment will depend upon the nature of the payment
and the circumstances of the recipient. The principles to apply are
explained at
BIM50710.
The Inland Revenue and the Arts Council of Great Britain
reviewed the tax treatment of awards, grants and bursaries then
paid in 1978. The Arts Council published the agreement and a copy
was included in the Inspectors Manual at IM2691b. The agreement was
made long before the Inland Revenue published its guidance manuals
which explain the principles to apply. It is not reproduced in this
guidance. If you need to see a copy please contact Business Tax
(Technical).
