Discretionary business rates relief for pop-up shops

State aid is financial support that is provided by the state to business organisations.

The EU state aid regulations have been replaced by new rules on subsidy control. These new rules are the small amounts of financial assistance allowance.

Small amounts of financial assistance allowance - grants (rates relief would be treated the same as a cash grant) may be paid in accordance with Article 3.2(4) of the Trade and Co-operation Agreement (TCA), which enables an applicant to receive up to a maximum level of subsidy without engaging chapter 3 of the TCA. This allowance is the equivalent of 325,000 special drawing rights, to a single economic actor over any period of three fiscal years and includes any subsidy previously received as 'de minimis' aid or as small amounts of financial assistance under Article 3.2(4) of the TCA from any subsidy awarding body. As at 21 June 2022, this was the equivalent of £352,806, using the special drawing right calculator (coinmill.com)

If businesses are in any doubt, they should take their own legal advice.

Businesses must ensure that by receiving business rates support they will not breach the applicable thresholds. Businesses will be required to self-certify this is the case when applying for business rates relief for a pop-up shop.

Last updated: 19/04/2023 11:09