PART TWOU.K.[F1COMMON PROVISIONS APPLICABLE TO SUPPORT FOR RURAL DEVELOPMENT]

TITLE VIIU.K.FINANCIAL SUPPORT FROM THE ESI FUNDS

CHAPTER IIIU.K.Eligibility of expenditure and durability

Article 65E+N.I.Eligibility

1.The eligibility of expenditure shall be determined on the basis of national rules, except where specific rules are laid down in, or on the basis of, this Regulation or the Fund-specific rules.

2.Expenditure shall be eligible for a contribution from [F2support for rural development] if it has been incurred by a beneficiary and paid between the date of submission of the programme to the Commission or from 1 January 2014, whichever is earlier, and 31 December 2023. In addition, expenditure shall only be eligible for [F3support for rural development] if the relevant aid is actually paid by the paying agency between 1 January 2014 and 31 December 2023.

F43.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.In the case of costs reimbursed pursuant to points (b) and (c) of the first subparagraph of Article 67(1), the actions constituting the basis for reimbursement shall be carried out between 1 January 2014 and 31 December 2023.

F55.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.Operations shall not be selected for support by [F6support for rural development] where they have been physically completed or fully implemented before the application for funding under the programme is submitted by the beneficiary to the managing authority, irrespective of whether all related payments have been made by the beneficiary.

F77.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.This paragraph shall apply to operations which generate net revenue during their implementation and to which paragraphs 1 to 6 of Article 61 do not apply.

The eligible expenditure of the operation [F8receiving support for rural development] shall be reduced by the net revenue not taken into account at the time of approval of the operation directly generated only during its implementation, not later than at the final payment claim submitted by the beneficiary. Where not all the costs are eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the cost.

This paragraph shall not apply to:

(a)technical assistance;

(b)financial instruments;

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

(d)prizes;

F9(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f)operations for which public support takes the form of lump sums or standard scale unit costs provided that the net revenue has been taken into account ex ante;

(g)operations implemented under a joint action plan provided that the net revenue has been taken into account ex ante;

[F10(h)operations for which amounts or rates of support are defined in Annex II to [F11Regulation (EU) No 1305/2013] or in the EMFF Regulation with the exception of those operations for which reference is made to this paragraph in the EMFF Regulation; or]

[F10(i)operations for which the total eligible cost does not exceed EUR 100 000.]

For the purposes of this Article and Article 61, any payment received by the beneficiary arising from contractual penalties as a result of a breach of contract between the beneficiary and a third party or third parties or that has occurred as a result of the withdrawal of an offer by a third party chosen under public procurement rules (the 'deposit') shall not be considered as revenue and shall not be deducted from the eligible expenditure of the operation.

9.Expenditure that becomes eligible as a result of an amendment to a programme shall only be eligible from the date of submission to the [F12relevant authority] of the request for amendment F13....

The Fund-specific rules for the EMFF may derogate from the first subparagraph.

10.By way of derogation from paragraph 9, specific provisions on the starting date of eligibility may be established in [F14Regulation (EU) No 1305/2013].

[F15By way of derogation from paragraph 9, expenditure for operations for fostering crisis response capacities in the context of the COVID-19 outbreak shall be eligible as of 1 February 2020.]

[F1611.An operation may receive support for rural development or from one or more programmes and from CMO support or direct payment support or support under other retained direct EU legislation, provided that the expenditure declared is not declared more than once.]

Extent Information

E1This version of this provision applies to England and Northern Ireland only; separate versions have been created for Scotland and Wales

Textual Amendments

Article 65SEligibility

1.The eligibility of expenditure shall be determined on the basis of national rules, except where specific rules are laid down in, or on the basis of, this Regulation or the Fund-specific rules.

[F592.Expenditure is eligible for support for rural development if it has been incurred by a beneficiary and paid between 1 January 2021 and 31 December 2024.]

F603.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.In the case of costs reimbursed pursuant to points (b) and (c) of the first subparagraph of Article 67(1), the actions constituting the basis for reimbursement shall be carried out between 1 January [F612021] and 31 December [F622024].

F635.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.Operations shall not be selected for support by [F64support for rural development] where they have been physically completed or fully implemented before the application for funding under the programme is submitted by the beneficiary to the managing authority, irrespective of whether all related payments have been made by the beneficiary.

F657.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.This paragraph shall apply to operations which generate net revenue during their implementation and to which paragraphs 1 to 6 of Article 61 do not apply.

The eligible expenditure of the operation [F66receiving support for rural development] shall be reduced by the net revenue not taken into account at the time of approval of the operation directly generated only during its implementation, not later than at the final payment claim submitted by the beneficiary. Where not all the costs are eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the cost.

This paragraph shall not apply to:

(a)technical assistance;

(b)financial instruments;

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

(d)prizes;

F67(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f)operations for which public support takes the form of lump sums or standard scale unit costs provided that the net revenue has been taken into account ex ante;

(g)operations implemented under a joint action plan provided that the net revenue has been taken into account ex ante;

[F68(h)operations for which amounts or rates of support are defined in Annex II to [F69Regulation (EU) No 1305/2013] or in the EMFF Regulation with the exception of those operations for which reference is made to this paragraph in the EMFF Regulation; or]

[F68(i)operations for which the total eligible cost does not exceed [F70GBP 83,333].]

For the purposes of this Article and Article 61, any payment received by the beneficiary arising from contractual penalties as a result of a breach of contract between the beneficiary and a third party or third parties or that has occurred as a result of the withdrawal of an offer by a third party chosen under public procurement rules (the 'deposit') shall not be considered as revenue and shall not be deducted from the eligible expenditure of the operation.

9.Expenditure that becomes eligible as a result of an amendment to a programme shall only be eligible from the date of [F71adoption of that amendment by the Scottish Ministers.]

The Fund-specific rules for the EMFF may derogate from the first subparagraph.

10.By way of derogation from paragraph 9, specific provisions on the starting date of eligibility may be established in [F72Regulation (EU) No 1305/2013].

[F73By way of derogation from paragraph 9, expenditure for operations for fostering crisis response capacities in the context of the COVID-19 outbreak shall be eligible as of 1 February 2020.]

[F7411.An operation may receive support for rural development or from one or more programmes and from CMO support or direct payment support or support under other retained direct EU legislation, provided that the expenditure declared is not declared more than once.]

Extent Information

E5This version of this provision extends to Scotland only; a separate version has been created for England and Wales and Northern Ireland

Textual Amendments

Article 65WEligibility

1.The eligibility of expenditure shall be determined on the basis of national rules, except where specific rules are laid down in, or on the basis of, this Regulation or the [F75rural development] rules.

F762.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F773.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F784.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F795.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.Operations shall not be selected for support by [F80support for rural development] where they have been physically completed or fully implemented before the application for funding under the programme is submitted by the beneficiary to the managing authority, irrespective of whether all related payments have been made by the beneficiary.

F817.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.This paragraph shall apply to operations which generate net revenue during their implementation and to which paragraphs 1 to 6 of Article 61 do not apply.

The eligible expenditure of the operation [F82receiving support for rural development] shall be reduced by the net revenue not taken into account at the time of approval of the operation directly generated only during its implementation, not later than at the final payment claim submitted by the beneficiary. Where not all the costs are eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the cost.

This paragraph shall not apply to:

F83(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)financial instruments;

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

(d)prizes;

F84(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f)operations for which public support takes the form of lump sums or standard scale unit costs provided that the net revenue has been taken into account F85...;

(g)operations implemented under a joint action plan provided that the net revenue has been taken into account F86...;

F87(h). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F88(i)operations for which the total eligible cost does not exceed EUR 100 000.]

For the purposes of this Article and Article 61, any payment received by the beneficiary arising from contractual penalties as a result of a breach of contract between the beneficiary and a third party or third parties or that has occurred as a result of the withdrawal of an offer by a third party chosen under public procurement rules (the 'deposit') shall not be considered as revenue and shall not be deducted from the eligible expenditure of the operation.

9.Expenditure that becomes eligible as a result of an amendment to a programme shall only be eligible from the date of submission to the [F89relevant authority] of the request for amendment F90....

F91...

10.By way of derogation from paragraph 9, specific provisions on the starting date of eligibility may be established in [F92Regulation (EU) No 1305/2013].

F93...

[F9411.An operation may receive support for rural development or from one or more programmes and from CMO support F95... or support under other retained direct EU legislation, provided that the expenditure declared is not declared more than once.]

Extent Information

E6This version of this provision applies to Wales only; separate versions have been created for England, Scotland and Northern Ireland

Textual Amendments

F75Words in Art. 65(1) 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(24)(a)

F76Art. 65(2) 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(24)(b)

F78Art. 65(4) 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(24)(c)

F83Art. 65(8)(a) 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(24)(d)(i)

F85Words in Art. 65(8)(f) 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(24)(d)(ii)

F86Words in Art. 65(8)(g) 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(24)(d)(iii)

F87Art. 65(8)(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(24)(d)(iv)

F91Words in Art. 65(9) 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(24)(e)

F93Words in Art. 65(10) 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(24)(f)

F95Words in Art. 65(11) 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(24)(g)

Article 66U.K.Forms of support

[F17Support for rural development may be provided] in the form of grants, prizes, repayable assistance and financial instruments, or a combination thereof.

In the case of repayable assistance, the support repaid to the body that provided it, [F18or to another competent authority F19... ,] shall be kept in a separate account or separated with accounting codes and reused for the same purpose or in accordance with the objectives of the programme.

Textual Amendments

F18Words in Art. 66 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(25)

Article 67E+S+N.I.Forms of grants and repayable assistance

1.Grants and repayable assistance may take any of the following forms:

(a)reimbursement of eligible costs actually incurred and paid, together with, where applicable, contributions in kind and depreciation;

(b)standard scales of unit costs;

[F10(c)lump sums;]

(d)flat-rate financing, determined by the application of a percentage to one or more defined categories of costs[F10;]

[F20(e)financing which is not linked to costs of the relevant operations but is based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes as set out in [F21legislation made under] paragraph 5a.]

Fund-specific rules may limit the forms of grants or repayable assistance applicable to certain operations.

[F20For the form of financing referred to in point (e) of the first subparagraph, the audit shall exclusively aim at verifying that the conditions for reimbursement have been fulfilled.]

2.By way of derogation from paragraph 1, additional forms of grants and methods of calculation may be established in the EMFF Regulation.

[F202a.F22...

Where flat-rate financing is used, the categories of costs to which the flat rate is applied may be reimbursed in accordance with point (a) of the first subparagraph of paragraph 1.

For operations [F23receiving support for rural development], where the flat rate referred to in Article 68b(1) is used, the allowances and the salaries paid to participants may be reimbursed in accordance with point (a) of the first subparagraph of paragraph 1 of this Article.

F22...]

3.The options referred to in paragraph 1 may be combined only where each option covers different categories of costs or where they are used for different projects forming a part of an operation or for successive phases of an operation.

[F104.Where an operation or a project forming a part of an operation is implemented exclusively through the public procurement of works, goods or services, only points (a) and (e) of the first subparagraph of paragraph 1 shall apply. Where the public procurement within an operation or project forming part of an operation is limited to certain categories of costs, all the options referred to in paragraph 1 may be applied for the whole operation or project forming a part of an operation.]

5.The amounts referred to in points (b), (c) and (d) of the first subparagraph of paragraph 1 shall be established in one of the following ways:

[F10(a)a fair, equitable and verifiable calculation method based on any of the following:

(i)

statistical data, other objective information or an expert judgement;

(ii)

the verified historical data of individual beneficiaries;

(iii)

the application of the usual cost accounting practices of individual beneficiaries;]

[F20(aa)a draft budget established on a case-by-case basis and agreed ex ante by the managing authority, or in the case of [F24support for rural development] the authority responsible for the selection of operations, where the public support does not exceed [F25EUR 100 000][F25GBP 83,333];]

F26(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)in accordance with the rules for application of corresponding scales of unit costs, lump sums and flat rates applied under schemes for grants funded entirely by [F27the relevant authority] for a similar type of operation and beneficiary;

(d)rates established by this Regulation or the Fund-specific rules;

(e)specific methods for determining amounts established in accordance with the Fund-specific rules.

[F205a.The [F28appropriate authority may make regulations] supplementing this Regulation with regard to the definition of the standard scales of unit costs or the flat-rate financing referred to in points (b) and (d) of the first subparagraph of paragraph 1 of this Article, the related methods referred to in point (a) of paragraph 5 of this Article and the form of support referred to in point (e) of the first subparagraph of paragraph 1 of this Article, by specifying detailed modalities concerning the financing conditions and their application.]

6.The document setting out the conditions for support for each operation shall set out the method to be applied for determining the costs of the operation and the conditions for payment of the grant.

Extent Information

E2This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

Article 67WForms of grants and repayable assistance

1.Grants and repayable assistance may take any of the following forms:

(a)reimbursement of eligible costs actually incurred and paid, together with, where applicable, contributions in kind and depreciation;

(b)standard scales of unit costs;

[F96(c)lump sums;]

(d)flat-rate financing, determined by the application of a percentage to one or more defined categories of costs[F96;]

[F97(e)financing which is not linked to costs of the relevant operations but is based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes as set out in [F98legislation made under] paragraph 5a.]

[F99Rules may limit the forms of grants or repayable assistance applicable to certain operations.]

[F97For the form of financing referred to in point (e) of the first subparagraph, the audit shall exclusively aim at verifying that the conditions for reimbursement have been fulfilled.]

F1002.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F972a.F101...

Where flat-rate financing is used, the categories of costs to which the flat rate is applied may be reimbursed in accordance with point (a) of the first subparagraph of paragraph 1.

For operations [F102receiving support for rural development], where the flat rate referred to in Article 68b(1) is used, the allowances and the salaries paid to participants may be reimbursed in accordance with point (a) of the first subparagraph of paragraph 1 of this Article.

F101...]

3.The options referred to in paragraph 1 may be combined only where each option covers different categories of costs or where they are used for different projects forming a part of an operation or for successive phases of an operation.

[F964.Where an operation or a project forming a part of an operation is implemented exclusively through the public procurement of works, goods or services, only points (a) and (e) of the first subparagraph of paragraph 1 shall apply. Where the public procurement within an operation or project forming part of an operation is limited to certain categories of costs, all the options referred to in paragraph 1 may be applied for the whole operation or project forming a part of an operation.]

5.The amounts referred to in points (b), (c) and (d) of the first subparagraph of paragraph 1 shall be established in one of the following ways:

[F96(a)a fair, equitable and verifiable calculation method based on any of the following:

(i)

statistical data, other objective information or an expert judgement;

(ii)

the verified historical data of individual beneficiaries;

(iii)

the application of the usual cost accounting practices of individual beneficiaries;]

[F97(aa)a draft budget established on a case-by-case basis and agreed F103... by the managing authority, or in the case of [F104support for rural development] the authority responsible for the selection of operations, where the public support does not exceed [F105£100 000];]

F106(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)in accordance with the rules for application of corresponding scales of unit costs, lump sums and flat rates applied under schemes for grants funded entirely by [F107the relevant authority] for a similar type of operation and beneficiary;

(d)rates established by this Regulation F108...;

(e)specific methods for determining amounts established F109....

[F975a.The [F110appropriate authority may make regulations] supplementing this Regulation with regard to the definition of the standard scales of unit costs or the flat-rate financing referred to in points (b) and (d) of the first subparagraph of paragraph 1 of this Article, the related methods referred to in point (a) of paragraph 5 of this Article and the form of support referred to in point (e) of the first subparagraph of paragraph 1 of this Article, by specifying detailed modalities concerning the financing conditions and their application.]

6.The document setting out the conditions for support for each operation shall set out the method to be applied for determining the costs of the operation and the conditions for payment of the grant.

Extent Information

E7This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F99Words in Art. 67(1) 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(26)(a)

F100Art. 67(2) 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(26)(b)

F103Words in Art. 67(5)(aa) 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(26)(c)(i)(aa)

F105Sum in Art. 67(5)(aa) 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(26)(c)(i)(bb)

F108Words in Art. 67(5)(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(26)(c)(ii)

F109Words in Art. 67(5)(e) 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(26)(c)(iii)

[F10Article 68U.K. Flat-rate financing for indirect costs concerning grants and repayable assistance

Where the implementation of an operation gives rise to indirect costs, they may be calculated at a flat rate in one of the following ways:

(a)

a flat rate of up to 25 % of eligible direct costs, provided that the rate is calculated on the basis of a fair, equitable and verifiable calculation method or a method applied under schemes for grants funded entirely by the [F29relevant authority] for a similar type of operation and beneficiary;

(b)

a flat rate of up to 15 % of eligible direct staff costs without there being a requirement for the [F29relevant authority] to perform a calculation to determine the applicable rate;

(c)

a flat rate applied to eligible direct costs based on existing methods and corresponding rates, applicable in F30... policies for a similar type of operation and beneficiary.

The [F31appropriate authority may make regulations] to supplement the provisions on the flat rate and the related methods referred to in point (c) of the first subparagraph of this paragraph.]

Textual Amendments

[F20Article 68aU.K. Staff costs concerning grants and repayable assistance

1.Direct staff costs of an operation may be calculated at a flat rate of up to 20 % of the direct costs other than the staff costs of that operation. F32[F33The relevant authority] shall not be required to perform a calculation to determine the applicable rate provided that the direct costs of the operation do not include public works contracts which exceed in value the threshold set out in [F34point (a) of Article 4 of Directive 2014/24/EU] [F34regulation 5 of the Public Contracts Regulations 2015].

2.For the purposes of determining staff costs, an hourly rate may be calculated by dividing the latest documented annual gross employment costs by 1 720 hours for persons working full time, or by a corresponding pro-rata of 1 720 hours, for persons working part-time.

3.When applying the hourly rate calculated in accordance with paragraph 2, the total number of hours declared per person for a given year shall not exceed the number of hours used for the calculations of that hourly rate.

F35...

4.Where annual gross employment costs are not available, they may be derived from the available documented gross employment costs or from the contract for employment, duly adjusted for a 12-month period.

5.Staff costs related to individuals who work on part-time assignment on the operation may be calculated as a fixed percentage of the gross employment costs, in line with a fixed percentage of time worked on the operation per month, with no obligation to establish a separate working time registration system. The employer shall issue a document for employees setting out that fixed percentage.

Textual Amendments

F32Words in Art. 68a(1) 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(27)(i)

F34Words in Art. 68a(1) 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(27)(ii)

Article 68bU.K. Flat-rate financing for costs other than staff costs

1.A flat rate of up to 40 % of eligible direct staff costs may be used in order to cover the remaining eligible costs of an operation without a requirement for the [F36relevant authority] to execute any calculation to determine the applicable rate.

For operations [F37receiving support for rural development] salaries and allowances paid to participants shall be considered additional eligible costs not included in the flat rate.

2.The flat rate referred to in paragraph 1 shall not be applied to staff costs calculated on the basis of a flat rate.]

Textual Amendments

Article 69U.K.Specific eligibility rules for grants and repayable assistance

1.Contributions in kind in the form of provision of works, goods, services, land and real estate for which no cash payment supported by invoices, or documents of equivalent probative value, has been made, may be eligible on condition that the eligibility rules of [F38support for rural development] and the programme so provide and that all the following criteria are fulfilled:

(a)the public support paid to the operation which includes contributions in kind does not exceed the total eligible expenditure, excluding contributions in kind, at the end of the operation;

(b)the value attributed to contributions in kind does not exceed the costs generally accepted on the market in question;

(c)the value and the delivery of the contribution can be independently assessed and verified;

(d)in the case of provision of land or real estate, a cash payment, for the purposes of a lease agreement of a nominal amount per annum not exceeding [F39one pound], may be made;

(e)in the case of contributions in kind in the form of unpaid work, the value of that work is determined by taking into account the verified time spent and the rate of remuneration for equivalent work.

The value of the land or real estate referred to in point (d) of the first subparagraph of this paragraph shall be certified by an independent qualified expert or duly authorised official body and shall not exceed the limit laid down in point (b) of paragraph 3.

2.Depreciation costs may be considered as eligible where the following conditions are fulfilled:

(a)the eligibility rules of the programme allow for it;

(b)the amount of the expenditure is duly justified by supporting documents having equivalent probative value to invoices for eligible costs where reimbursed in the form referred to in point (a) of the first subparagraph of Article 67(1);

(c)the costs relate exclusively to the period of support for the operation;

(d)public grants have not contributed towards the acquisition of the depreciated assets.

3.The following costs shall not be eligible for a contribution from [F40support for rural development]F41...:

(a)interest on debt, except in relation to grants given in the form of an interest rate subsidy or guarantee fee subsidy;

(b)the purchase of land not built on and land built on in the amount exceeding 10 % of the total eligible expenditure for the operation concerned. For derelict sites and for those formerly in industrial use which comprise buildings, that limit shall be increased to 15 %. In exceptional and duly justified cases, the limit may be raised above the respective aforementioned percentages for operations concerning environmental conservation;

(c)value added tax except where it is non-recoverable under national VAT legislation.

Textual Amendments

[F10Article 70E+S+N.I. Eligibility of operations depending on location

1.Subject to the derogations referred to in paragraph 2 and the Fund-specific rules, operations supported by [F42support for rural development] shall be located in the programme area.

Operations concerning the provision of services to citizens or businesses which cover the whole territory of a [F43relevant authority] shall be considered as being located in all programme areas within a [F44constituent nation]. In such cases, expenditure shall be allocated to the concerned programme areas on a pro-rata basis, based on objective criteria.

The second subparagraph of this paragraph does not apply to the national programme referred to in Article 6(2) of Regulation (EU) No 1305/2013 or to the specific programme for the establishment and the operation of the national rural network referred to in Article 54(1) of that Regulation.

2.The managing authority may accept that an operation is implemented outside the programme area F45... provided that all the following conditions are satisfied:

(a)the operation is for the benefit of the programme area;

(b)[F46the total amount allocated under the programme to operations located outside the programme area does not exceed 15% of the support for rural development at the level of the priority at the time of the adoption of the programme;]

(c)the monitoring committee has given its agreement to the operation or types of operations concerned;

(d)the obligations of the authorities for the programme in relation to management, control and audit concerning the operation are fulfilled by the authorities responsible for the programme under which that operation is supported or they enter into agreements with authorities in the area in which the operation is implemented.

Where operations F47... are implemented outside the programme area in accordance with this paragraph and have benefits both outside and within the programme area, such expenditure shall be allocated to those areas on a pro rata basis based on objective criteria.

F48...

3.For operations concerning technical assistance or information, communication and visibility measures and promotional activities, and for operations concerning the thematic objective referred to in point (1) of the first paragraph of Article 9, expenditure may be incurred outside [F49the constituent nations] provided that the expenditure is necessary for the satisfactory implementation of the operation.

F504.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

Extent Information

E3This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

[F111Article 70W Eligibility of operations depending on location

1.Subject to the derogations referred to in paragraph 2 F112..., operations supported by [F113support for rural development] shall be located in the programme area.

Operations concerning the provision of services to citizens or businesses which cover the whole territory of a [F114relevant authority] shall be considered as being located in all programme areas within a [F115constituent nation]. In such cases, expenditure shall be allocated to the concerned programme areas on a pro-rata basis, based on objective criteria.

F116...

2.The managing authority may accept that an operation is implemented outside the programme area F117... provided that all the following conditions are satisfied:

(a)the operation is for the benefit of the programme area;

(b)[F118the total amount allocated under the programme to operations located outside the programme area does not exceed 15% of the support for rural development at the level of the priority at the time of the adoption of the programme;]

F119(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)the obligations of the authorities for the programme in relation to management, control and audit concerning the operation are fulfilled by the authorities responsible for the programme under which that operation is supported or they enter into agreements with authorities in the area in which the operation is implemented.

Where operations F120... are implemented outside the programme area in accordance with this paragraph and have benefits both outside and within the programme area, such expenditure shall be allocated to those areas on a pro rata basis based on objective criteria.

F121...

3.For operations concerning F122... information, communication and visibility measures and promotional activities F123... expenditure may be incurred outside [F124the constituent nations] provided that the expenditure is necessary for the satisfactory implementation of the operation.

F1254.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

Extent Information

E8This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F112Words in Art. 70(1) 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(28)(a)(i)

F116Words in Art. 70(1) 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(28)(a)(ii)

F119Art. 70(2)(c) 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(28)(b)

F122Words in Art. 70(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(28)(c)(i)

F123Words in Art. 70(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(28)(c)(ii)

Article 71E+S+N.I.Durability of operations

1.An operation comprising investment in infrastructure or productive investment shall repay the contribution from [F51support for rural development] if within five years of the final payment to the beneficiary F52... it is subject to any of the following:

(a)a cessation or relocation of a productive activity outside the programme area;

(b)a change in ownership of an item of infrastructure which gives to a firm or a public body an undue advantage;

(c)a substantial change affecting its nature, objectives or implementation conditions which would result in undermining its original objectives.

Sums unduly paid in respect of the operation shall be recovered by the [F53relevant authority] in proportion to the period for which the requirements have not been fulfilled.

[F54The relevant authority] may reduce the time limit set out in the first subparagraph to three years in cases concerning the maintenance of investments or jobs created by SMEs.

2.An operation comprising investment in infrastructure or productive investment shall repay the contribution from [F51support for rural development] if within 10 years of the final payment to the beneficiary the productive activity is subject to relocation outside [F55the United Kingdom and its territorial sea], except where the beneficiary is an SME. F56...

F573.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F104.Paragraphs 1, 2 and 3 of this Article shall not apply to contributions to or by financial instruments or for lease purchase under point (b) of Article 45(2) of Regulation (EU) No 1305/2013 nor to any operation which undergoes cessation of a productive activity due to a non-fraudulent bankruptcy.]

F585.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extent Information

E4This version of this provision applies to England, Scotland and Northern Ireland only; a separate version has been created for Wales

Textual Amendments

F56Words in Art. 71(2) omitted (31.12.2020 immediately after IP completion day) by virtue of The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(3), Sch. 1 para. 7(8)(b) (with Sch. 3)

Article 71WDurability of operations

1.[F126An operation comprising investment in infrastructure or productive investment shall repay the contribution from support for rural development if within five years of the final payment to the beneficiary it is subject to any of the following:]

(a)a cessation or relocation of a productive activity outside the programme area;

(b)a change in ownership of an item of infrastructure which gives to a firm or a public body an undue advantage;

(c)a substantial change affecting its nature, objectives or implementation conditions which would result in undermining its original objectives.

Sums unduly paid in respect of the operation shall be recovered by the [F127relevant authority] in proportion to the period for which the requirements have not been fulfilled.

F128...

[F1292.An operation comprising investment in infrastructure or productive investment shall repay the contribution from support for rural development if within 10 years of the final payment to the beneficiary the productive activity is subject to relocation outside the United Kingdom and its territorial sea.]

F1303.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F1314.[F132Paragraphs 1 and 2] of this Article shall not apply to contributions to or by financial instruments or for lease purchase under point (b) of Article 45(2) of Regulation (EU) No 1305/2013 nor to any operation which undergoes cessation of a productive activity due to a non-fraudulent bankruptcy.]

F1335.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extent Information

E9This version of this provision applies to Wales only; a separate version has been created for England, Scotland and Northern Ireland

Textual Amendments

F126Words in Art. 71(1) 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(29)(a)(i)

F128Words in Art. 71(1) 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(29)(a)(ii)

F129Art. 71(2) 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(29)(b)

F132Words in Art. 71(4) 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(29)(c)

Textual Amendments