Subsidy Allowance applicable to COVID-19 Additional Relief

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.

The allowance is applied in two stages:

1. Small Amounts of Financial Assistance Allowance (SAFA)

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.

2. Covid-19 Additional Relief Allowance (CARA)

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)

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:

  • intend to use the support to fund uncovered fixed costs (costs not covered by profits for insurance and so on) during the period of COVID-19. Economic actors may claim for up to 70% of their uncovered costs (although this 70% limit does not apply to small businesses with less than 50 employees and less than £9 million turnover where the limit is instead 90%), and

  • have shown a decline in turnover of at least 30% within the April 2020 to March 2021 period, compared to the same period in 2019 to 2020.

Subsidies to include and exclude in the allowance calculation

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.  

What information do I need to supply to be granted relief in line with the UK subsidy allowance(s)?

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.

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