Commission Regulation (EC) No 718/2007Show full title

Section 2 U.K. General requirements on eligibility and aid intensities

Article 172 U.K. Eligibility of expenditure

1. In addition to the costs mentioned in Article 34(2), the costs referred to in paragraph 3(c) shall be considered eligible under this component.

The technical assistance measures eligible under Article 34(2) are those referred to in Article 182.

2. In addition to the provisions of Article 34(3), the following expenditure shall not be eligible under this component:

(a) the purchase of agricultural production rights, animals, annual plants and their planting;

(b) any maintenance, depreciation and rental costs;

(c) any cost incurred by public administration in managing and implementing assistance.

3. Notwithstanding the provisions of Article 34(3), in the case of investment:

(a) eligible expenditure shall be limited to the construction or improvement of immovable property;

(b) the purchase or lease-purchase of new machinery and equipment, including computer software up to the market value of the asset shall be considered as eligible; other costs connected with the leasing contract, such as lessor's margin, interest refinancing costs, overheads and insurance charges, shall not be eligible;

(c) general costs linked to expenditure referred to in points (a) and (b), such as architects’, engineers’ and other consultation fees, feasibility studies, the acquisition of patent rights and licences shall be eligible up to a ceiling of 12 % of the costs referred to in points (a) and (b).

Detailed provisions for the implementation of this paragraph shall be set out in sectoral agreements as defined in Article 7 or financing agreements as defined in Article 8.

4. Investment projects shall remain eligible for Community financing provided they do not, within five years from the final payment by the operating structure, undergo a substantial modification.

Article 173 U.K. Aid intensities and rate of Community contribution

1. For the purposes of this component, the eligible expenditure as referred to in Article 38(1) shall be calculated on the basis of the public expenditure as defined in Article 2.

2. Public expenditure shall in principle not exceed a ceiling of 50 % of the total eligible cost of the investment. However, that ceiling shall be raised up to:

(a) 55 % for investments in agricultural holdings made by young farmers;

(b) 60 % for investments in agricultural holdings in mountain areas;

(c) 65 % for investments in agricultural holdings in mountain areas made by young farmers;

(d) 75 % for investments referred to in paragraph 4(d) and for investments in agricultural holdings to implement the Council Directive 91/676/EEC(1), subject to the existence of a national strategy for its implementation;

(e) 100 % for investments in infrastructure not of a nature to generate substantial net revenue;

(f) 100 % for measures referred to under in Article 182.

3. In determining the rate of public expenditure for the purposes of paragraph 2, account shall not be taken of national aid to facilitate access to loans granted without any Community contribution provided under the IPA Regulation.

4. The Community contribution shall in principle not exceed a ceiling of 75 % of the eligible expenditure. However, that ceiling shall be raised up to:

(a) 80 % for the measures covered by priority axis 2 referred to in Article 171(3);

(b) 80 % in the case of activities covered by Article 182, where those activities are not taken at the initiative of the Commission;

(c) 100 % in the case of activities covered by Article 182, where those activities are taken at the initiative of the Commission;

(d) 85 % in the case of investment projects carried out in regions where the Commission determines that exceptional natural disasters have occurred.

(1)

OJ L 375, 31.12.1991, p. 1.