Regulation (EU) No 1303/2013 of the European Parliament and of the CouncilShow full title

CHAPTER I U.K. Support from the ESI Funds

F2 Article 60 U.K. Determination of co-financing rates

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Textual Amendments

F2 Art. 60 omitted (31.12.2020) by virtue of The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(1); 2020 c. 1, Sch. 5 para. 1(1)

Article 61 E+S+N.I. Operations generating net revenue after completion

[F3 1. This Article shall apply to operations which generate net revenue after their completion. For the purposes of this Article, ‘net revenue’ means cash in-flows directly paid by users for the goods or services provided by the operation, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services less any operating costs and replacement costs of short-life equipment incurred during the corresponding period. Operating cost-savings generated by the operation, with the exception of cost-savings resulting from the implementation of energy efficiency measures, shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies.]

Where not all the investment cost is eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the investment cost.

2. The eligible expenditure of the operation to be co-financed from [F4 support for rural development] shall be reduced in advance taking into account the potential of the operation to generate net revenue over a specific reference period that covers both implementation of the operation and the period after its completion.

3. The potential net revenue of the operation shall be determined in advance by one of the following methods chosen by the managing authority for a sector, subsector or type of operation:

(a) application of a flat rate net revenue percentage for the sector or subsector applicable to the operation as defined in Annex V or in any of the delegated acts referred to in the second, third and fourth subparagraphs;

[F5 (aa) application of a flat rate net revenue percentage established by a [F6 relevant authority] for a sector or subsector not covered by point (a). Before the application of the flat rate the responsible audit authority shall verify that the flat rate has been established according to a fair, equitable and verifiable method based on historical data or objective criteria;]

(b) calculation of the discounted net revenue of the operation, taking into account the reference period appropriate to the sector or subsector applicable to the operation, the profitability normally expected of the category of investment concerned, the application of the polluter-pays principle and, if appropriate, considerations of equity linked to the relative prosperity of the [F6 relevant authority] or region concerned.

The [F7 appropriate authority may make regulations] in duly justified cases to amend Annex V by adjusting the flat rates established therein taking into account historical data, the potential for cost recovery and the polluter-pays principle where applicable.

F8 ...

In addition, the [F9 appropriate authority may make regulations] in duly justified cases with regard to adding sectors or subsectors, including subsectors for sectors in Annex V, falling under the thematic objectives defined in the first paragraph of Article 9 and [F10 funded by support for rural development].

Where the method referred to in point (a) of the first subparagraph is applied, all the net revenue generated during implementation and after completion of the operation shall be considered to be taken into account by the application of the flat rate and shall therefore not be deducted subsequently from the eligible expenditure of the operation.

When a flat rate for a new sector or subsector has been established by [F11 legislation in accordance with the fourth subparagraph], a managing authority may choose to apply the method set out in point (a) of the first subparagraph for new operations in relation to the sector or subsector concerned.

The [F12 appropriate authority may make regulations], laying down the method referred to in point (b) of the first subparagraph. Where that method is applied, the net revenue generated during implementation of the operation, resulting from sources of revenue not taken into account in determining the potential net revenue of the operation, shall be deducted from the eligible expenditure of the operation, no later than in the final payment claim submitted by the beneficiary.

F13 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F3 5. As an alternative to the application of the methods laid down in paragraph 3 of this Article, the maximum co-financing rate referred to in Article 60(1) may, at the request of a [F6 relevant authority], be decreased for a priority or measure under which all supported operations could apply a uniform flat rate in accordance with point (a) of the first subparagraph of paragraph 3 of this Article. The decrease shall be not less than the amount calculated by multiplying the maximum [F14 core contribution] applicable under the Fund-specific rules by the relevant flat rate referred to in that point.]

6. Where it is objectively not possible to determine the revenue in advance based on any of the methods set out in paragraphs 3 or 5, the net revenue generated within three years of the completion of an operation, or by the deadline for the submission of documents for programme closure fixed in the Fund-specific rules, whichever is the earlier, shall be deducted from the expenditure declared to the [F15 relevant authority].

7. Paragraphs 1 to 6 shall not apply to:

F16 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) operations whose total eligible cost before application of paragraphs 1 to 6 does not exceed [F17 EUR 1 000 000][F17 GBP 833,333];

(c) repayable assistance subject to an obligation for full repayment and prizes;

(d) technical assistance;

(e) support to or from financial instruments;

(f) operations for which public support takes the form of lump sums or standard scale unit costs;

(g) operations implemented under a joint action plan;

[F3 (h) operations for which amounts or rates of support are defined in Annex II to [F18 Regulation (EU) No 1305/2013] or in the EMFF Regulation.]

Notwithstanding point (b) of the first subparagraph of this paragraph, where a [F6 relevant authority] applies paragraph 5, it may include in the relevant priority or measure operations whose total eligible cost before application of paragraphs 1 to 6 does not exceed [F17 EUR 1 000 000][F17 GBP 833,333].

F19 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extent Information

E1 This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

F3 Substituted by Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012.

F4 Words in Art. 61(2) substituted (31.12.2020) by The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(a) (as amended by S.I. 2020/1542, regs. 1(2), 13(9)(a)(i)); 2020 c. 1, Sch. 5 para. 1(1)

F5 Inserted by Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012.

F6 Words in Art. 61 substituted (31.12.2020) by The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(b); 2020 c. 1, Sch. 5 para. 1(1)

F7 Words in Art. 61(3) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 81(a); 2020 c. 1, Sch. 5 para. 1(1)

F8 Words in Art. 61(3) omitted (31.12.2020) by virtue of The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 81(b); 2020 c. 1, Sch. 5 para. 1(1)

F9 Words in Art. 61(3) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 81(c)(i); 2020 c. 1, Sch. 5 para. 1(1)

F10 Words in Art. 61(3) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 81(c)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F11 Words in Art. 61(3) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 81(d); 2020 c. 1, Sch. 5 para. 1(1)

F12 Words in Art. 61(3) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 81(e); 2020 c. 1, Sch. 5 para. 1(1)

F13 Art. 61(4) omitted (31.12.2020) by virtue of The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(c); 2020 c. 1, Sch. 5 para. 1(1)

F14 Words in Art. 61(5) substituted (31.12.2020) by The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(d); 2020 c. 1, Sch. 5 para. 1(1)

F15 Words in Art. 61(6) substituted (31.12.2020) by The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(e); 2020 c. 1, Sch. 5 para. 1(1)

F16 Art. 61(7)(a) omitted (31.12.2020) by virtue of The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(f)(i); 2020 c. 1, Sch. 5 para. 1(1)

F17 Sum in Art. 61(7) substituted (S.) (1.1.2021) by The Rural Development (EU Exit) (Scotland) (Amendment) Regulations 2020 (S.S.I. 2020/477), regs. 1(2), 2(6)

F18 Words in Art. 61(7)(h) substituted (31.12.2020) by The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(f)(ii)(aa); 2020 c. 1, Sch. 5 para. 1(1)

F19 Art. 61(8) omitted (31.12.2020) by virtue of The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 1 para. 7(5) (with Sch. 3)

Article 61 W Operations generating net revenue after completion

[F20 1. This Article shall apply to operations which generate net revenue after their completion. For the purposes of this Article, ‘net revenue’ means cash in-flows directly paid by users for the goods or services provided by the operation, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services less any operating costs and replacement costs of short-life equipment incurred during the corresponding period. Operating cost-savings generated by the operation, with the exception of cost-savings resulting from the implementation of energy efficiency measures, shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies.]

Where not all the investment cost is eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the investment cost.

2. The eligible expenditure of the operation to be co-financed from [F21 support for rural development] shall be reduced in advance taking into account the potential of the operation to generate net revenue over a specific reference period that covers both implementation of the operation and the period after its completion.

3. The potential net revenue of the operation shall be determined in advance by one of the following methods chosen by the managing authority for a sector, subsector or type of operation:

(a) application of a flat rate net revenue percentage for the sector or subsector applicable to the operation as defined in Annex V or in any of the delegated acts referred to in the second, third and fourth subparagraphs;

[F22 (aa) application of a flat rate net revenue percentage established by a [F23 relevant authority] for a sector or subsector not covered by point (a). Before the application of the flat rate the responsible audit authority shall verify that the flat rate has been established according to a fair, equitable and verifiable method based on historical data or objective criteria;]

(b) calculation of the discounted net revenue of the operation, taking into account the reference period appropriate to the sector or subsector applicable to the operation, the profitability normally expected of the category of investment concerned, the application of the polluter-pays principle and, if appropriate, considerations of equity linked to the relative prosperity of the [F23 relevant authority] or region concerned.

The [F24 appropriate authority may make regulations] in duly justified cases to amend Annex V by adjusting the flat rates established therein taking into account historical data, the potential for cost recovery and the polluter-pays principle where applicable.

F25 ...

In addition, the [F26 appropriate authority may make regulations] in duly justified cases with regard to adding sectors or subsectors F27 ....

Where the method referred to in point (a) of the first subparagraph is applied, all the net revenue generated during implementation and after completion of the operation shall be considered to be taken into account by the application of the flat rate and shall therefore not be deducted subsequently from the eligible expenditure of the operation.

When a flat rate for a new sector or subsector has been established by [F28 legislation in accordance with the fourth subparagraph], a managing authority may choose to apply the method set out in point (a) of the first subparagraph for new operations in relation to the sector or subsector concerned.

The [F29 appropriate authority may make regulations], laying down the method referred to in point (b) of the first subparagraph. Where that method is applied, the net revenue generated during implementation of the operation, resulting from sources of revenue not taken into account in determining the potential net revenue of the operation, shall be deducted from the eligible expenditure of the operation, no later than in the final payment claim submitted by the beneficiary.

F30 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F31 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Where it is objectively not possible to determine the revenue in advance based on any of the methods set out in [F32 paragraph 3], the net revenue generated within three years of the completion of an operation F33 ... shall be deducted from the expenditure declared to the [F34 relevant authority].

7. Paragraphs 1 to 6 shall not apply to:

F35 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) operations whose total eligible cost before application of paragraphs 1 to 6 does not exceed [F36 £1,000,000];

(c) repayable assistance subject to an obligation for full repayment and prizes;

F37 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) support to or from financial instruments;

(f) operations for which public support takes the form of lump sums or standard scale unit costs;

(g) operations implemented under a joint action plan;

F38 (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F39 ...

F40 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extent Information

E2 This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F20 Substituted by Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012.

F21 Words in Art. 61(2) substituted (31.12.2020) by The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(a) (as amended by S.I. 2020/1542, regs. 1(2), 13(9)(a)(i)); 2020 c. 1, Sch. 5 para. 1(1)

F22 Inserted by Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012.

F23 Words in Art. 61 substituted (31.12.2020) by The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(b); 2020 c. 1, Sch. 5 para. 1(1)

F24 Words in Art. 61(3) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 81(a); 2020 c. 1, Sch. 5 para. 1(1)

F25 Words in Art. 61(3) omitted (31.12.2020) by virtue of The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 81(b); 2020 c. 1, Sch. 5 para. 1(1)

F26 Words in Art. 61(3) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 81(c)(i); 2020 c. 1, Sch. 5 para. 1(1)

F27 Words in Art. 61(3) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(a)

F28 Words in Art. 61(3) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 81(d); 2020 c. 1, Sch. 5 para. 1(1)

F29 Words in Art. 61(3) substituted (31.12.2020) by The Agriculture (Legislative Functions) (EU Exit) Regulations 2019 (S.I. 2019/748), regs. 1, 81(e); 2020 c. 1, Sch. 5 para. 1(1)

F30 Art. 61(4) omitted (31.12.2020) by virtue of The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(c); 2020 c. 1, Sch. 5 para. 1(1)

F31 Art. 61(5) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(b)

F32 Words in Art. 61(6) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(c)(i)

F33 Words in Art. 61(6) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(c)(ii)

F34 Words in Art. 61(6) substituted (31.12.2020) by The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(e); 2020 c. 1, Sch. 5 para. 1(1)

F35 Art. 61(7)(a) omitted (31.12.2020) by virtue of The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/785), regs. 1, 11(2)(f)(i); 2020 c. 1, Sch. 5 para. 1(1)

F36 Sum in Art. 61(7)(b) substituted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(d)(i)

F37 Art. 61(7)(d) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(d)(ii)

F38 Art. 61(7)(h) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(d)(iii)

F39 Words in Art. 61(7) omitted (W.) in so far as it relates to domestic support for rural development (26.3.2021) by virtue of The Agricultural Support (Miscellaneous Amendments) (Wales) (EU Exit) Regulations 2021 (S.I. 2021/400), regs. 1(2), 6(21)(d)(iv)

F40 Art. 61(8) omitted (31.12.2020) by virtue of The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 1 para. 7(5) (with Sch. 3)