A subsidy refers to a grant, tax break, loan or other form of financial assistance paid from public resources.
Business Rates discretionary relief (including Retail, Hospitality and Leisure Discount) is likely to be subject to the Minimal Financial Assistance limits under the Subsidy Control Act. This means no recipient can receive over £315,000 over a 3 year period (consisting of the current financial year and the 2 previous financial years).
Minimal Financial Assistance thresholds cumulate with each and other subsidies that fall into the category of ‘Minimal or SPEI financial assistance’. BEIS COVID-19 business grants and any other subsidies claimed under the Small Amounts of Financial Assistance limit of the Trade and Cooperation Agreement should be counted towards the £315,000 allowance.
Relief will not be awarded in any circumstances where it appears that an award will result in the ratepayer receiving subsidy that is above the current de minimum level. However, it remains the responsibility of the business to ensure that discretionary rate relief will not result in exceeding limits.