Subsidy allowance

Local schemes, including 2022/23 Transitional relief and Retail, hospitality and leisure discount

Local relief schemes, including Transitional Relief and the Retail, Hospitality and Leisure relief scheme in 2022/23 are subject to the subsidies chapter within the UK-EU Trade and Cooperation Agreement (TCA). The subsidies chapter within the TCA applies to subsidies over the value of approximately £343,000 per beneficiary over a 3-year period (consisting of the current financial year and the two previous financial years) (the Small Amounts of Financial Assistance limit). Retail Discounts granted in 2020/21 or 2021/22 do not count towards the limit. Covid business grants received from local government and any other subsidy claimed under the Small Amounts of Financial Assistance limit over the 3 year period should be counted.

Therefore, to claim Transitional relief or the Retail, Hospitality and Leisure discount in 2022/23 you must not have exceeded the Small Amounts of Financial Assistance limit of £343,000 over 3 years (including 2022/23).

The Government and Elmbridge Borough Council will not tolerate any business falsifying their records or providing false evidence to gain relief, including claiming support above the subsidy limit. A person and/or business that falsely applies for any relief, or provides false information or makes false representation in order to gain support may be guilty of fraud under the Fraud Act 2006

COVID business grants and COVID additional relief fund (CARF)

COVID-19 business support schemes (e.g. grants and the COVID-19 additional business rate relief) are subject to the subsidies chapter within the UK-EU Trade and Cooperation Agreement (TCA). However, for COVID-19 business support there is an exemption for subsidies under the value of approximately £2,243,000 per economic actor (broadly speaking, for example, a holding company and its subsidiaries).

This allowance comprises 325,000 Special Drawing Rights (at current exchange rates about £343,000) for Small Amounts of Financial assistance and a further £1,900,000 for COVID-19 related subsidy. Therefore, to be eligible you must not have claimed over the period 2019/20 to 2021/22 more than £2,243,000 from schemes which fell within the Small Amounts of Financial Assistance or COVID-19 related allowances. COVID-19 business grants you have received from local government and 2019/20 Business Rate Retail Relief should count towards this limit, but you should not count any Extended Retail Discount you have received to 31 March 2022. Further details of subsidy control can be found on the GOV.UK website.

You may claim up to a further £10 million of additional allowance (on top of the £2,243,000) only if you meet the additional requirements below 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). The additional requirements are:

  • The business intends to use the support to fund uncovered fixed costs (costs not covered by profits for insurance etc.) 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 2019 to 2020 period. 

The Government and Elmbridge Borough Council will not tolerate any business falsifying their records or providing false evidence to gain support awards, including claiming support above these thresholds. A person and/or business that falsely applies for any relief, or provides false information or makes false representation in order to gain support may be guilty of fraud under the Fraud Act 2006.

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