What is state aid legislation?
What is state aid? State aid is any advantage granted by public authorities through state resources on a selective basis to any organisations that could potentially distort competition and trade in the European Union (EU).
What is the purpose of state aid?
State aid is an advantage given by a government that may provide a company with an unfair competitive edge over its commercial rivals.
What is de minimis state aid rules?
The de minimis regulation recognises that some State Aids are too insignificant in size to be a concern. The limit for de minimis is €200K over any rolling three year period for any one business.
What is state aid for a business?
State Aid refers to public money being used to provide assistance to organisations. The use of State Aid is regulated and monitored to ensure that this State money is not used to distort competition and trade in the European Union.
Is R&D de minimis state aid?
Crucially though, the research and development expenditure credit (RDEC) is not considered state aid. And this is where you can often find a way forward that means you can make use of both types of funding.
Will state aid rules apply after Brexit?
The EU State aid rules will no longer apply to most aid provided by government departments and other public authorities in England, Scotland and Wales, unless this relates to Northern Ireland companies and is within the scope of Article 10 of the Northern Ireland Protocol.
What is state aid called?
Subsidy Control – the UK’s new name for state aid.
Why is state aid prohibited?
A company that receives government support gains an advantage over its competitors. Therefore the Treaty generally prohibits State aid unless it is justified by reasons of general economic development.
Do de minimis state aid rules apply to you or any connected employers?
If you’re a connected company, the total de minimis state aid for all of the companies in the group must be below the de minimis state aid threshold for your sector. The rules are different if your business covers more than one sector.
What is included in state aid?
State aid is any advantage granted by a public bodies through state resources on a selective basis, to any organisations that could potentially distort competition and trade in the European Union. The definition of state aid is broad because ‘an advantage’ can take many forms.
Does R&D count state aid?
Additionally, companies can claim for notified state aid-funded projects if they are applying for tax relief using the RDEC scheme. SMEs that have undertaken notified state aid-funded R&D projects should typically claim using RDEC, because the RDEC scheme is not notified state aid (whilst the SME scheme is).
Is R&D notified state aid?
SME R&D Tax Relief – one of two schemes that make up R&D Tax Relief – is also classed as notified state aid. The other scheme, the Research and Development Expenditure Credit – or RDEC – is not. Under EC rules, companies are not allowed to receive more than one type of notified state aid for the same development work.
What are the new EU rules for state aid for R&D&I?
In the course of the State Aid Modernisation initiative, EU-rules for State aid for Research, Development and Innovation (R&D&I) have been revised. New legal texts entered into force on July 1st 2014: the new Framework for State aid for Research, Development and Innovation (the Framework) and the new General Block Exemption Regulation (GBER).
What are the state aid rules?
The expression “the State aid rules” is short-hand for the provisions of the TFEU governing State aid as well as the regulations, notices, communications, frameworks and guidelines issued by the Commission4.
What are the new legal texts for R&D&I?
New legal texts entered into force on July 1st 2014: the new Framework for State aid for Research, Development and Innovation (the Framework) and the new General Block Exemption Regulation (GBER). This article describes the scope of the modifications and discusses new concepts the Commission has introduced in R&D&I State aid rules.
What is state aid and how does it work?
State aid is the use of state funding or state funded resources to support businesses or other organisations (referred to in the State aid rules as undertakings). This public aid need not necessarily entail a cash transaction.