# The Subsidy Control (Gross Cash Amount and Gross Cash Equivalent) Regulations 2022, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations set out how the gross cash amount or the gross cash equivalent amount of a subsidy is to be determined for the purposes of certain provisions contained in, or made under, the Subsidy Control Act 2022 (“the Act”).
Regulation 3 sets out the provisions which these Regulations apply to. These are provisions contained in, or made under, the Act that apply to thresholds or other requirements which are based on the amount of a subsidy determined by reference to its gross cash amount or its gross cash equivalent. Regulation 3 also sets out which types of subsidy are to be valued by reference to their gross cash amount, and which types of subsidy are to be valued by reference to their gross cash equivalent.
Regulations 4 sets out the general approach to be applied when determining the gross cash amount of subsidies given by means of a grant, or the gross cash equivalent of subsidies given by other means (including those given in the form of a tax measure). Regulation 5 provides that the further supplementary provisions set out in regulations 6 to 9 may be applied when determining the gross cash equivalent of certain types of subsidies, namely small loans, small loan guarantees, and loans or guarantees which relate to persons with a strong, good or satisfactory level of credit worthiness.
Regulations 6 and 7 set out the conditions which a subsidy must meet to qualify as a small loan or a small loan guarantee and provides for such subsidies to be valued at or below £315,000.
Regulation 8 allows for the market interest rate of a loan to a person with a strong, good or satisfactory level of credit worthiness to be determined using the tables in Schedule 2.
Regulation 9 allows for the market premium for a guarantee relating to a person with a strong, good or satisfactory level of credit worthiness to be determined by reference to the table in Schedule 3.
A full impact assessment has not been produced for this instrument as the effect of this instrument on the costs of business, the voluntary sector and the public sector is covered by the impact assessment produced in relation to the provisions of the Act, a copy of which is available at https://www.gov.uk/government/publications/subsidy-control-bill-2021-bill-documents. An Explanatory Memorandum is published alongside this instrument on www.legislation.gov.uk.

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Source: https://www.legislation.gov.uk/uksi/2022/1186/note (the official version)
Page: https://openlegislation.uk/subsidy-control-gross-cash-amount-and-gross-cash-equivalent-regulations-2022/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.