# The Subsidy Control (Gross Cash Amount and Gross Cash Equivalent) Regulations 2022, Regulation 4: General approach to determine the gross cash amount or the gross cash equivalent of a subsidy


(1) Where a subsidy is given by means of a grant, the gross cash amount is to be determined by reference to the amount of cash made available under the grant.
(2) Where a subsidy is given by any other means (except in the form of a tax measure), the gross cash equivalent amount is to be determined by reference to the value of the benefit conferred by the subsidy on an enterprise, taking into account the difference between—
(a) the terms on which the subsidy is given, and
(b) the terms on which financial assistance of the same kind might reasonably have been expected to have been available on the market to the enterprise.
(3) Where a subsidy is given in the form of a tax measure, the gross cash equivalent is to be determined by reference to the value of the benefit conferred by the subsidy on an enterprise taking into account the difference between—
(a) the tax liability borne by an enterprise as a result of that tax measure, and
(b) the tax liability that the enterprise would otherwise have borne under the normal taxation regime.
(4) When determining the gross cash amount or the gross cash equivalent of a subsidy under paragraphs (1) or (2)—
(a) the determination must be made in accordance with generally accepted accounting practice, and
(b) no deductions are to be made for taxes or other charges payable on the subsidy.
(5) Where it is appropriate to apply a discount rate to reflect the present value of a subsidy when it is given, the discount rate applied must be equal to 5.3% per annum.
(6) A determination made under paragraph (2) or (3) may be based upon a reasonable estimate of the maximum foreseeable gross cash equivalent amount if—
(a) the subsidy is given in the form of a tax measure, or
(b) it is not reasonably possible to calculate precisely the gross cash equivalent of the subsidy.
(7) Without prejudice to the generality of regulation 3(1), a determination made in reliance on paragraph 6 may be used, in particular, for the purpose of ascertaining—
(a) whether a subsidy is a subsidy of interest or a subsidy of particular interest,
(b) the maximum amount of an individual subsidy that may be given under a subsidy scheme, or
(c) whether a subsidy scheme allows for a subsidy of interest or a subsidy of particular interest to be given under it.

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Source: https://www.legislation.gov.uk/uksi/2022/1186/regulation/4 (the official version)
Page: https://openlegislation.uk/subsidy-control-gross-cash-amount-and-gross-cash-equivalent-regulations-2022/regulation-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.