Corporation Tax Act 2009 section 1217RJ

Limit on State aid

Section 1217RJ caps the total orchestra tax credits that any single undertaking can receive per year, in line with EU State aid rules that applied before IP completion day.

• The annual cap on orchestra tax credits is 50 million euros per undertaking.
• The limit derives from EU Commission Regulation No. 651/2014 (the General Block Exemption Regulation), as it had effect immediately before IP completion day.
• The term "undertaking" is to be interpreted in accordance with the General Block Exemption Regulation, which may mean the cap applies at group or economic-entity level rather than per individual company.
• Credits exceeding the 50 million euro threshold cannot be paid under the orchestra tax credit provisions in section 1217RI.