Arts Council Grant and ESA

I’ve tried to research this but drawn a complete blank.

Does an Art Council Grant award count as self-employed earnings for ESA permitted work purposes?

If not, does it count as income for IBESA purposes?

Or perhaps if paid as a lump sum count as capital?

Can’t find any DWP guidance on this or in CPAG etc.

Thanks very much to anyone that can help.

Not sure if this helps - if it is defned as taxable income or not

9 June 2020

The Arts Council always recommends that grant recipients refer to HMRC and/or an independent advisor for advice that takes full account of their personal circumstances for tax. In general, as per the agreement reached between the Inland Revenue and the Arts Council of Great Britain in 1978, which we understand still applies, it is the Arts Council’s understanding that:

Grants awarded to support people to take time out to develop and explore their artistic and cultural practice (such as those grants recently made under the Arts Council’s Emergency Response Fund for Individuals) should not be treated as taxable income.

Grants awarded to support the delivery of a specific project or projects would be treated as taxable income.’

https://questions-statements.parliament.uk/written-questions/detail/2020-06-01/53581

Thanks very much for this.

The distinction between types of awards does help.

My thoughts would be that an Art Council grant awarded for personal development would be income but not earnings for permitted work purposes.

But that an Art Council Grant to support the delivery of a specific project would count as earnings if the artist was being paid and employed to deliver the project.

Not sure if anyone has any thoughts on this.