PART 1Overview and key interpretation

“Subsidy”

2“Subsidy”

1

In this Act, “subsidy” means financial assistance which—

a

is given, directly or indirectly, from public resources by a public authority,

b

confers an economic advantage on one or more enterprises,

c

is specific, that is, is such that it benefits one or more enterprises over one or more other enterprises with respect to the production of goods or the provision of services, and

d

has, or is capable of having, an effect on—

i

competition or investment within the United Kingdom,

ii

trade between the United Kingdom and a country or territory outside the United Kingdom, or

iii

investment as between the United Kingdom and a country or territory outside the United Kingdom.

2

For the purposes of this Act, the means by which financial assistance may be given include—

a

a direct transfer of funds (such as grants or loans);

b

a contingent transfer of funds (such as guarantees);

c

the forgoing of revenue that is otherwise due;

d

the provision of goods or services;

e

the purchase of goods or services.

3

Financial assistance given from the person’s resources by a person who is not a public authority is to be treated for the purposes of subsection (1)(a) as financial assistance given from public resources by a public authority if the involvement of a public authority in the decision to give financial assistance is such that the decision is, in substance, the decision of the public authority.

4

For the purposes of subsection (3), the factors which may be taken into account when considering the involvement of a public authority in the decision of a person to give financial assistance include, in particular, factors relating to—

a

the control exercised over that person by that public authority, or

b

the relationship between that person and that public authority.

5

For the purposes of this Act, financial assistance is to be treated as given to an enterprise if the enterprise has an enforceable right to the financial assistance.

6

For further provision relevant to the interpretation of this section, see—

a

section 3 (financial assistance which confers an economic advantage);

b

section 4 (financial assistance which is specific);

c

section 5 (modification for air carriers);

d

section 6 (meaning of “public authority”);

e

sections 7 and 8 (meaning of “enterprise”).