Grants on your CT600: where to enter taxable and non-taxable grants

Last updated: 24 September 2026

Short version. Enter only the grant income your prepared accounts recognise in this period. A taxable revenue grant for your trade that is not a sale goes in Other trading income. For an amount already recognised as income that your company treats as not taxable, use Income not falling under any other heading and the same amount in Other income not taxable. A grant balance your accounts defer belongs in Accruals and deferred income, not in this period's profit and loss or a tax adjustment.

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1. Before you start

This guide explains how SimpleCompanyTax records figures. It is general guidance, not accounting or tax advice. We cannot decide whether your grant is income now, deferred income, taxable income or a capital receipt. Use the treatment you have determined for your company's circumstances and any accounting advice you have received.

Have the income recognised in your prepared accounts, any deferred balance, the tax treatment and the source of the grant ready. For an asset grant, use the qualifying expenditure from your prepared capital-allowance calculation.

2. Enter your prepared figures

In the filing wizard, open Financial data. Use Profit & loss for income recognised this period. Use Balance sheet for any deferred balance and cash held. Use Tax adjustments only for an adjustment to income already recognised in the accounts.

Taxable non-sales income of your trade, such as a revenue grant towards running costs: Profit & loss → Other trading income
Enter the amount recognised this period. It joins trading profit in CT600 box 155 and does not increase turnover or box 145.
Grant towards letting costs: Profit & loss → Property rental income or Income from property (net)
Use the gross or net property route you selected. This feeds box 190.
Grant income outside both your trade and property business: Profit & loss → + Add other income → Income not falling under any other heading
Enter the recognised amount. The taxable remainder feeds box 205.
Recognised grant income your company treats as not taxable: Profit & loss → Income not falling under any other heading, then Tax adjustments → Other income not taxable
Enter the excluded amount in both rows. Keep any taxable trading part in Other trading income. This adjustment cannot reduce that trading row.
Grant balance carried forward as deferred income in your prepared accounts: Balance sheet → Accruals and deferred income
Do not also enter the deferred amount in this period’s profit and loss or Other income not taxable.
Grant cash still held: Balance sheet → Current assets
Include cash as part of the Current assets total, after any amount spent.
Grant towards an asset: Balance sheet → Tangible assets and Tax adjustments → Annual Investment Allowance claimed, if applicable
Enter the asset value shown in your accounts and the qualifying expenditure and claim you have prepared.

If your prepared accounts classify a payment as turnover because it pays for goods or services, enter it in Turnover. A payment called a grant is not automatically outside turnover.

For a long accounts period filed as two CT600s, Other trading income follows the trading-profit day split. Income not falling under any other heading and its non-taxable subset also split by days. A one-off box 205 receipt can therefore appear partly in the return for the other period. Review both computations. This service does not offer a separate allocation for box 205.

3. Fictional examples

A fictional workshop recognises a £3,000 taxable grant towards staff costs. It enters £3,000 in Other trading income. Its turnover is unchanged.

A different fictional workshop recognises £7,200 for its trade and treats £4,500 as chargeable and £2,700 as not chargeable. It enters £4,500 in Other trading income, £2,700 in Income not falling under any other heading and £2,700 in Other income not taxable. The taxable part remains trading income. The recognised £7,200 appears in the accounts within Other income.

A fictional shop receives £6,000. Its prepared accounts recognise £2,000 as taxable trading income this period and defer £4,000. It enters £2,000 in Other trading income and £4,000 in Accruals and deferred income. Any cash still held is in Current assets. It does not use Other income not taxable to defer the £4,000.

4. Check the result

Before approving your filing, compare the accounts Other income rows, the balance sheet, the tax computation and CT600 boxes 145, 155, 190 or 205 as applicable. If the accounts period produces two returns, check each return separately.