Trade and Cooperation Agreement (previously De Minimis State Aid)

Business owners should note that non-domestic rates relief is capped by the EU-UK Trade and Cooperation Agreement de minimis threshold. There is currently a ceiling of 325 Special Drawing Rights (around £340k, although exact amount will fluctuate) that can be granted over any three year rolling period to any single undertaking. The term Special Drawing Rights refers to the International Monetary Fund (IMF) reserve currency rate of exchange which fluctuates on a daily basis.

You must consider whether you have already recieved support from any public sector body in the current and previous two accounting (fiscal) years.

Any subsidy (or similar aid including de minimis aid granted prior to 31 december 2020) awarded to the applicant will be relevant if the applicant wishes to apply, or has applied for any non-domestic rates relief.

To ensure that we comply with the subsidy regime, we may be required to cap this relief. This may depend on:

  • whether or not you have an interest in any business with other properties which is in reciept, or eligable, for one of the existing rate relief schemes
  • the level of other public sector assistance recieved by the economic actor making the application

The European Commission Temporary Framework enables Members States to grant aid to undertakings facing difficulty as a result of the COVID-19 outbreak. The Temporary Framework covers support granted to businesses which were not already in financial difficulty on 31 December 2019, and aid support granted to businesses no later than 31 December 2020.

If you consider that you, or any other company you have a single undertaking relationship with in the UK, have already received COVID-19 related support from UK, Scottish and Local Government in excess of, or close to, this sum you must declare this if applying for any further support. Not all grants are considered to be capped in this way and we will determine this from your completed Subsidy and Aid Information form.