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State aid

Whilst the UK left the EU on 31 January 2020, the Withdrawal Agreement negotiated by the government and the EU provides that during a transition period, state aid rules will continue to apply and be subject to control by the EU Commission as it is currently. The government has notified the EU of its intention to bring forward an immediate change to the UK’s tax treatment of non-domestic property, in response to the ongoing COVID-19 emergency, and to seek clearance under Article 107(3)(b) of the Treaty on the Functioning of the European Union. Subject to this approval, the Expanded Retail Discount scheme, the Nursery discount scheme will become a notified state aid.

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