Salford’s scheme for Covid-19 Additional Relief is subject to the subsidies chapter within the UK-EU Trade and Cooperation Agreement (TCA).
However, for this relief there is an exemption for subsidies under the value of approximately £2,243,000 per economic actor. Broadly speaking this is, for example, a holding company and its subsidiaries.
This is calculated for the eligible period which covers three-years consisting of the current financial year and the two previous financial years.
This allowance falls within Article 364 of the TCA, which permits an economic actor to receive up to £325,000 Special Drawing Rights in a three-year period. This is calculated using the Special Drawing Right calculator which at current exchange rates equates to about £343,000.
Where SAFA has been reached, additional subsidies may be awarded in compliance with the principles set out in Article 366 of the TCA and in compliance with Article 36.4 of the TCA. For the purposes of this relief an economic actor is permitted to receive additional of up to a further £1,900,000 for COVID-19 related losses. This may be combined with SAFA to permit an economic actor to receive up to £2,243,000 from Covid-19 Additional Relief (or less if some of the SAFA allowance has already been used or claimed via other COVID-19 related subsidies).
If you have already exceeded the £2,243,000 allowance you may be able to claim under the Covid-19 Additional Relief Further Allowance (CARFA)
If you have already exceeded the £2,243,000 allowance you may claim up to a further £10 million of additional allowance (on top of the £2,243,000) if you meet the below tests and you have not claimed any other support from the additional allowance up to an aggregate £10 million limit (such as from the COVID-19 business grants).
We will consider applications provided you can evidence that you:
Public subsidies including any COVID-19 business grants you have received from local government, retail relief in 2019/2020 and assistance received under the EU State Aid de minimus limit should count towards this allowance calculation.
However, the Extended Retail Discount awarded during 2020/21 or 2021/22 should not be included in the calculation.
It is the responsibility of the business at ‘economic actor’ level to understand that by accepting this relief it will not breach the current UK Subsidy Allowance thresholds. During the application process you will need to indicate:
a) If you have not, to date received any subsidy which fell within the Small Amounts of Financial Assistance or Covid-19 related allowances;
b) If you have received other such subsidies, then you should provide the name and total value of those subsidies.
c) If you are applying under Covid-19 Additional Relief Further Allowance (CARFA) you will need to submit documentation to evidence your uncovered fixed costs and decline in turnover.
Further details of subsidy control applicable to CARF can be found on the government’s website.