de minimis aid

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As small amounts of aid are unlikely to distort competition, a useful approved EU mechanism for State aid is the industrial de minimis regulation which allows small amounts of aid, that is, less than €300,000 over a 3 year period, to a single undertaking for a wide range of purposes.

Public Authorities should note that the information on this page is only applicable when the aid being provided is within the scope of Article 10 of the Windsor Framework. If you are providing support to service sector companies, please discuss with DfE Subsidy Control Advice Unit.

Using the de minimis regulation

If you use the de minimis regulation you don't need to formally notify the aid to the European Commission or get prior approval, but you must comply with all of the conditions of the regulation.

Granting de minimis aid

Before deciding to grant de minimis aid you must ensure that the award does not breach an undertaking's de minimis ceiling over any period of 3 years as defined in Article 3, Paragraph 2 of the de minimis regulations.

You must ask the undertaking concerned about any other de minimis aid they have received during the current and previous two fiscal years before any aid is provided
You must also inform the recipient explicitly that it is de minimis aid you are giving them, for their future reference. They should also be told that they must declare this in future if asked.
Sample texts for these letters are given in Annex B of the State aid Manual, which although it has been withdrawn, is still applicable when aid being granted is within the scope of Article 10 of the Windsor Framework.

If you are going to use the de minimis regulation for State aid cover, you must be able to justify your decision, and you must understand the requirements of the regulation and be sure that you can meet them.

Recording awards of de minimis aid

The de minimis regulation requires that public authorities keep records of all de minimis aid paid out for 10 years from the last payment. Beneficiaries must keep records of de minimis aid for 3 years. Records must also be kept to show that all conditions of the de minimis regulation has been met.

de minimis aid to the Agriculture and Fisheries Sectors

de minimis aid to the Agricultural Sector is covered by a separate regulation and is capped at €50,000 over a period of three years.

de minimis aid to the Fisheries and Aquaculture Sectors also has its own regulation and is capped at €30,000 over three consecutive fiscal years.

Further information

Contact

Please contact DfE Subsidy Control Advice Unit if you require Advice, Awareness or Assistance.

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