Budget 2016: State aid modernisation

A number of reliefs are subject EU state aid approval. These include venture capital reliefs, film tax relief, R&D relief and certain capital allowances.

In order to remain within the requirements for state aid approval there are limits to the amount of relief that can be claimed.

In order to monitor the level of state aid obtained in relation to these reliefs, Finance Bill 2016 will include provisions to give HMRC additional powers to require information to be provided by the beneficiary of reliefs subject to state aid for the purpose of checking that the state aid requirements have been fulfilled, and to enable HMRC to disclose information to the EU through a legal gateway for the publication of the data.

These provisions may require additional data to be provided to HMRC where businesses are in receipt of state aid by virtue of a number of tax reliefs available under UK legislation.