Legislation – Subsidy Control Act 2022

PART 1
Overview and key interpretation

1 Overview and application of Act

2 “Subsidy”

3 Financial assistance which confers an economic advantage

4 Financial assistance which is specific

5 Section 2: modification for air carriers

6 “Public authority”

7 “Enterprise”

8 Persons under common control

9 The subsidy control principles and the energy and environment principles

10 Subsidy schemes and streamlined subsidy schemes

11 Subsidies and schemes of interest or particular interest

PART 2
Subsidy control requirements

CHAPTER 1 Principles

12 Application of the subsidy control principles

13 Application of the energy and environment principles

CHAPTER 2 Prohibitions and other requirements

14 Introductory

General prohibitions

15 Unlimited guarantees

16 Export performance

17 Use of domestic goods or services

18 Relocation of activities

Ailing or insolvent enterprises

20 Restructuring

21 Restructuring deposit takers or insurance companies

22 Liquidating deposit takers or insurance companies

23 Liquidity provision for deposit takers or insurance companies

24 Meaning of “ailing or insolvent”

25 Meaning of “deposit taker”

26 Meaning of “insurance company”

Other specific prohibitions and requirements

27 Subsidies for insurers that provide export credit insurance

28 Subsidies for air carriers for the operation of routes

29 Services of public economic interest

Subsidy schemes

30 Effect of prohibitions etc in relation to subsidy schemes

Subsidies or schemes subject to mandatory referral

31 Subsidies or schemes subject to mandatory referral

CHAPTER 3 Transparency

32 Subsidy database

33 Duty to include information in the subsidy database

34 Information to be included in the subsidy database

PART 3
Exemptions

CHAPTER 1 Introductory

35 Introductory

CHAPTER 2 Minimal or SPEI financial assistance

Minimal financial assistance

36 Minimal financial assistance

37 Section 36: procedural requirements

Services of public economic interest assistance

38 Services of public economic interest assistance

39 Section 38: procedural requirements

40 Mergers and acquisitions

41 Exemption for certain subsidies given to SPEI enterprises

42 Chapter 2: supplementary and interpretative provision

CHAPTER 3 Emergencies etc.

43 Natural disasters and other exceptional circumstances

44 National or global economic emergencies

CHAPTER 4 Other miscellaneous exemptions

45 National security

46 Bank of England monetary policy

47 Financial stability

48 Legacy and withdrawal agreement subsidies

49 Tax measures

50 Large cross-border or international cooperation projects

51 Nuclear energy

PART 4
CMA: referrals and functions

CHAPTER 1 Functions on referrals of subsidies and schemes

Mandatory referrals

52 Mandatory referral to CMA

53 CMA reporting period for mandatory referral

54 Cooling off period following mandatory referral

55 Call-in direction

Voluntary referrals

56 Voluntary referral to CMA

57 CMA reporting period for voluntary referral

58 Call-in direction following voluntary referral

Mandatory and voluntary referrals: contents of CMA report

59 CMA report following mandatory or voluntary referral

Post-award referrals

60 Post-award referrals

61 CMA reporting period for post-award referrals

62 CMA report following post-award referral

63 Referrals in relation to subsidy schemes

64 Other exemptions

CHAPTER 2 General functions

65 Monitoring and reporting on subsidy control

66 CMA annual report

67 Information-gathering powers

CHAPTER 3 Subsidy Advice Unit

68 Subsidy Advice Unit

69 References to subsidy control groups

PART 5
Enforcement

70 Review of subsidy decisions

71 Time limits for applications under section 70

72 CAT powers on review: England and Wales and Northern Ireland

73 CAT powers on review: Scotland

74 Recovery orders

75 Appeals against decisions of the CAT

76 Duty to provide pre-action information

77 Misuse of subsidies

PART 6
Miscellaneous and general

CHAPTER 1 Miscellaneous

78 Subsidies and schemes in primary legislation

80 Disclosure of information

81 Modifications to subsidies and schemes

82 Gross cash and gross cash equivalent amount of financial assistance

83 Minor amendment to the Financial Services Act 2021

CHAPTER 2 General

84 Financial provision

85 Crown application

86 Power to make consequential provision

89 Interpretation

91 Commencement

SCHEDULES

SCHEDULE 1 The subsidy control principles

SCHEDULE 2 The energy and environment principles

SCHEDULE 3 Subsidies provided by primary legislation

Which version?
Latest available (Revised)
Original (As enacted)

Changes to legislation:

There are currently no known outstanding effects for the Subsidy Control Act 2022, Section 24.

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

PART 2Subsidy control requirements

CHAPTER 2Prohibitions and other requirements

Ailing or insolvent enterprises

24Meaning of “ailing or insolvent”

(1)

For the purposes of sections 19 to 23, a deposit taker, insurance company or other enterprise is “ailing or insolvent” if—

(a)

it would almost certainly go out of business in the short to medium term without subsidies,

(b)

it is unable to pay its debts as they fall due, or

(c)

the value of its assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities.

(2)

The Secretary of State may by regulations make provision as to when a deposit taker, insurance company or other enterprise is, or is not, to be regarded as meeting the condition in paragraph (a) of subsection (1).

(3)

Regulations under subsection (2) are subject to the affirmative procedure.