What is the de minimis State aid cap under Corporation Tax Act 2010 section 220B?

Section 220B caps total Community Investment Tax Relief reductions plus all other de minimis State aid received by the investor company at €200,000 over any rolling three-year period. The three-year window is measured backwards from the end of the accounting period for which CITR is being claimed, in line with EU de minimis rules.

How is the rolling three-year period calculated under section 220B?

The rolling three-year period ends at the close of the accounting period for which CITR is currently being claimed and runs back three years from that date. Within this window, the company totals all CITR reductions from qualifying investments and any other de minimis aid received, ensuring the combined amount does not exceed €200,000.

Do all CITR reductions count towards the €200,000 de minimis cap?

No. Only CITR reductions arising from investments made on or after 1 April 2013 count towards the €200,000 cap. However, any other de minimis State aid the company received during the three-year window — regardless of when it was received — is always included in the calculation towards the threshold.

Which EU regulation governs the €200,000 limit in section 220B?

The €200,000 limit must be interpreted in accordance with Commission Regulation (EC) No. 1998/2006, which governs de minimis State aid. All definitions and interpretive rules in that regulation apply when determining whether the cap has been breached, ensuring consistent application across EU member states.

Corporation Tax Act 2010 section 220B

Limit on State aid

Section 220B caps the amount of Community Investment Tax Relief (CITR) an investor company can claim over any rolling three-year period, to comply with EU de minimis State aid rules.

Total CITR reductions (including any amounts carried forward under section 220A) plus all other de minimis aid received by the investor must not exceed €200,000 over a rolling three-year period.
The three-year period is measured backwards from the end of the current accounting period for which relief is being claimed.
CITR reductions only count towards this cap where they relate to investments made on or after 1 April 2013, but any other de minimis aid received in the three-year window is always included.
The €200,000 threshold must be interpreted in line with the EU de minimis aid rules set out in Commission Regulation (EC) No. 1998/2006.

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