PART 3U.K.Exemptions

CHAPTER 2U.K.Minimal or SPEI financial assistance

Services of public economic interest assistanceU.K.

38Services of public economic interest assistanceU.K.

(1)The subsidy control requirements do not apply to SPEI assistance given to an enterprise if the total amount of minimal or SPEI financial assistance given to the enterprise within the applicable period does not exceed £725,000.

(2)The applicable period is the period comprising—

(a)the elapsed part of the current financial year, and

(b)the two financial years immediately preceding the current financial year.

(3)“SPEI assistance” means a subsidy given under this section, and for this purpose a subsidy is given under this section if—

(a)it is given to a SPEI enterprise for the purposes of the provision of SPEI services, and

(b)the authority giving the subsidy provides to the enterprise a SPEI assistance confirmation (see section 39(5)).

(4)In subsection (1), the reference to the subsidy control requirements does not include the requirements as to transparency in Chapter 3 of Part 2 except in relation to the giving of a subsidy as SPEI assistance if the amount of the subsidy is no more than £100,000.

(5)For the purposes of this section—

(a)if SPEI assistance is provided in cash, the gross cash amount given is to be used in determining the amount of assistance;

(b)if SPEI assistance is provided otherwise than in cash, the amount of assistance given is to be determined by reference to the gross cash equivalent of the assistance.

(6)This section does not authorise the giving of a subsidy relating to goods that is in contravention of section 16 (export performance) or 17 (use of domestic goods or services).

(7)In subsection (2)—

(a)the “current financial year” is the financial year in which the SPEI assistance is given, and

(b)the “elapsed part” of that year is so much of it as has passed at the time when it is given.

39Section 38: procedural requirementsU.K.

(1)Before giving SPEI assistance, a public authority must give to the enterprise a SPEI assistance notification.

(2)A “SPEI assistance notification” means a written statement—

(a)explaining that the authority is proposing to give to the enterprise a subsidy by way of SPEI assistance,

(b)specifying the gross value amount of the assistance, and

(c)requesting written confirmation from the enterprise that the total amount specified in section 38(1) will not be exceeded by the enterprise receiving the proposed assistance.

(3)The public authority may proceed to give the assistance only after it has received the confirmation referred to in subsection (2)(c).

(4)On giving the assistance, the public authority must provide to the enterprise a SPEI assistance confirmation.

(5)A “SPEI assistance confirmation” means a written statement confirming—

(a)that the subsidy is given as SPEI assistance,

(b)the date on which it is given, and

(c)the gross value amount of the assistance.

(6)The enterprise must keep a written record detailing—

(a)that it has received a subsidy by way of SPEI assistance,

(b)the date on which it was given, and

(c)the gross value amount of the assistance.

(7)The record required by subsection (6) must be kept for at least three years beginning with the date mentioned in paragraph (b) of that subsection.

(8)In this section—

• “the enterprise” means the enterprise that receives, or that would receive, SPEI assistance;

• “gross value amount” of SPEI assistance means the gross cash amount (see subsection (5)(a) of section 38) or the gross cash equivalent (see subsection (5)(b) of that section).