Subsidy control guidance
New rules on grant subsidy allowances
New national rules on grant subsidy allowances came into effect on 4 March 2021, which recipients of Covid-19 business grants schemes need to follow. These replace previous requirements to comply with EU State Aid rules.
Here is a broad summary of those requirements. Grant applicants will need to consult their own financial advisers if they have any questions about whether they comply with the government’s new rules on subsidy allowances.
- Under the ‘Small Amounts of Financial Assistance Allowance’, a single economic actor must not receive more than £335,000 in grants over any three-year fiscal period
- In cases where this threshold is reached, there is a further ‘Covid-19 Business Grant Allowance’ of a further £1,600,000 per single economic actor
- Beyond this threshold, there is a ‘Covid-19 Business Grant Special Allowance’ where applicants may be able to access a further allowance of funding up to a further £9,000,000 per single economic actor, subject to conditions