What Is De Minimis State Aid Rules

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In the short term, very little will change in practice, although there will certainly be a period of uncertainty while the British regime is still being developed. In the meantime, granting authorities (such as local authorities, etc.) must consider whether they fall within the definition of a subsidy under the CCA. That assessment will hardly differ from that which they should have made when granting aid, which had to be assessed in the light of EU State aid rules. Grant providers must also assess whether these measures fall within the principles set out in the CCA. For existing schemes, this state aid assessment will have already been carried out and grant providers are likely to continue to refer to EU state aid guidelines to inform their assessments until the UK scheme is announced. Under de minimis Regulation (EU) No 717/2014, limited amounts of aid may be granted for the production, processing and marketing of fishery products (e.B fish and crustaceans). The maximum amount that can be granted to a beneficiary is €30,000 over a consecutive period of three years. Each Member State also has a ceiling on the total amount of aid that can be granted under this Regulation, which means that all de minimis aid to fisheries must be registered with the State Aid Unit. It does not have to take the form of a grant, but it does need to be in a form that can be quantified in advance.

It may not be granted as `supplementary aid` for the same activity under another provision if the total amount of aid exceeds the maximum amount authorised under that provision. It may not be used for activities that increase fishing capacity or for the purchase or construction of fishing vessels. The UK has many important choices to make in its approach to the new regime. Possible block exemptions, evaluation criteria and guidelines for grant providers need to be examined in detail, in particular in sectors where conditions apply. This will be particularly interesting given the expected revisions of the various EU State aid guidelines, where the criteria to which subsidy providers in these sectors are accustomed are likely to vary considerably. Admittedly, the UK will not want to apply to UK companies more onerous criteria than those that might apply to their EU competitors in the future. It should be noted that the subsidy must be designed to address a market failure or “fairness justification”. This is in line with the requirement under EU state aid rules that measures must pursue a Treaty objective, but the wording of the ACC will give the UK greater discretion to identify other grounds of fairness that go beyond those provided for in the Treaty. Each Member State also has a ceiling for the total amount of aid that may be granted under this Regulation, which means that all de minimis aid granted for agriculture must be registered with the State Aid Unit.

It does not have to take the form of a grant, but it does need to be in a form that can be quantified in advance. It may not be granted as `supplementary aid` for the same activity under another provision if the total amount of aid exceeds the maximum amount authorised under that provision. The granting of EU state aid does not change for EU companies. Indeed, in some respects, CTA gives an indication of the likely evolution of EU State aid in the future, such as the prospect of an increase in the de minimis threshold. What will have a longer-term impact on EU companies will be their ability to complain about UK subsidies to their competitors, which, subject to the above considerations, will be limited to judicial review in the UK, at least for the foreseeable future. “According to EU Regulation No 1407/2013 (De minimis State Aid Regulation), this is de minimis aid. A ceiling of EUR 200 000 applies to all de minimis aid granted to an undertaking over a period of three years. Any de minimis aid granted to you under this letter of offer is relevant if you wish to apply for or have requested other de minimis aid. For the purposes of the de minimis regulation, you must keep this letter for three years from the date of this letter and submit it at the request of the UK authorities or the European Commission. (You may need to keep this letter for more than three years for other purposes.) In addition, the definition of what constitutes a “corporation” has been simplified and clarified. Details are set out in Article 2(2) of the Regulation.

3. You must also expressly inform the beneficiary that this is de minimis aid that you grant him for reference to a later date. This does not mean that all funds below the EUR 200 000 ceiling should be allocated as de minimis funds. It is strongly recommended that even small amounts be granted as aid under an approved specific scheme or, where possible, as a block exemption and to maintain de minimis cover as cover in the event that there are no other options. The ACC is halfway between these competing priorities: the basic rules of EU state aid law will continue to apply in the UK, albeit outside the jurisdiction of the CJEU. However, there are fundamental changes in the way the new British regime operates. When granting de minimis aid, you must ensure that the grant of a company`s de minimis ceiling is not exceeded during a three-year tax period within the meaning of Article 3(2) of the de minimis Regulation: the de minimis Regulation requires the authorities to keep a register of all de minimis aid paid for 10 years from the last payment. Beneficiaries must keep a de minimis aid register for 3 years. Records should also be kept certifying that all the conditions of the de minimis Regulation are fulfilled. De minimis aid for commercial road transport is limited to EUR 100 000 for a period of three fiscal years.

The aid may not be used for the purchase of road freight vehicles. In 2006, the Commission adopted a de minimis Regulation (Regulation (EC) No 1998/2006), which was valid for the period 2007 to 2013. The ceiling for exempted aid amounts has been doubled from EUR 100 000 per undertaking per 3-year period to EUR 200 000. This increase took into account not only the evolution of inflation and gross domestic product in the EU up to 2006, but also the expected evolution of these factors from 2007 to 2013. As a result of the financial crisis, real inflation was significantly lower than expected in 2006. A further increase in the ceiling is therefore not justified for these reasons. The ATT is not an agreement reached in relation to the future British regime. The United Kingdom will need to adopt new implementing legislation to create the proposed autonomous regime. However, it sets out some key features of this regime that highlight the substantial differences and similarities between existing EU rules and the future UK system. However, de minimis payments to an undertaking under a number of measures or schemes must cumulatively comply with the EUR 200 000 limit and Member States are required to closely monitor de minimis payments to ensure that the ceiling is not exceeded. De minimis rule — Exemption of small amounts of aid from notification De minimis aid refers to small State aid to companies (mainly companies) that EU countries do not have to notify to the European Commission. The maximum amount is 200,000 euros for each company over a period of 3 years.

Businesses and charities that employ individuals can claim relief against their first £3,000 of Class 1 national insurance liability from secondary “employers” in a tax year. For a large company with a large payroll, the full £3,000 can be received in the first month of the tax year. However, small businesses receive a portion of the relief each month when they pay their employees. If they do not end up with £3,000 of the employer`s NIC liabilities in a tax year, their entitlement to the employment allowance will be adjusted to the actual result. This means that a few weeks after the end of the tax year, they know how high their real entitlement to the employment allowance was the previous year. Since the de minimis aid is calculated over a rolling tax period of three years, mobilising the allocation in the financial year 2020-2021 would involve ensuring that all de minimis payments for agriculture received in the current and two previous financial years do not exceed EUR 20 000. 1. When granting de minimis aid, you must ensure that the new subsidy does not exceed the corresponding ceiling for a three-year tax period. 2.

They shall ask the beneficiary concerned about the de minimis aid received during its current financial year and the two previous financial years and determine the amount of de minimis aid which can still be granted without exceeding the corresponding ceiling. .

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