PART 1

Overview and key interpretation

“Subsidy”

“Subsidy”
2
1
In this Act, “subsidy” means financial assistance which—
a
is given, directly or indirectly, from public resources by a public authority,
b
confers an economic advantage on one or more enterprises,
c
is specific, that is, is such that it benefits one or more enterprises over one or more other enterprises with respect to the production of goods or the provision of services, and
d
has, or is capable of having, an effect on—
i
competition or investment within the United Kingdom,
ii
trade between the United Kingdom and a country or territory outside the United Kingdom, or
iii
investment as between the United Kingdom and a country or territory outside the United Kingdom.
2
For the purposes of this Act, the means by which financial assistance may be given include—
a
a direct transfer of funds (such as grants or loans);
b
a contingent transfer of funds (such as guarantees);
c
the forgoing of revenue that is otherwise due;
d
the provision of goods or services;
e
the purchase of goods or services.
3
Financial assistance given from the person’s resources by a person who is not a public authority is to be treated for the purposes of subsection (1)(a) as financial assistance given from public resources by a public authority if the involvement of a public authority in the decision to give financial assistance is such that the decision is, in substance, the decision of the public authority.
4
For the purposes of subsection (3), the factors which may be taken into account when considering the involvement of a public authority in the decision of a person to give financial assistance include, in particular, factors relating to—
a
the control exercised over that person by that public authority, or
b
the relationship between that person and that public authority.
5
For the purposes of this Act, financial assistance is to be treated as given to an enterprise if the enterprise has an enforceable right to the financial assistance.
6
For further provision relevant to the interpretation of this section, see—
a
section 3 (financial assistance which confers an economic advantage);
b
section 4 (financial assistance which is specific);
c
section 5 (modification for air carriers);
d
section 6 (meaning of “public authority”);
e
sections 7 and 8 (meaning of “enterprise”).
S. 2 in force at Royal Assent, see s. 91(1)(a)