The European Commission has found that a UK tax scheme is partly justified and does not constitute State aid, insofar as it ensures the proper functioning and effectiveness of the relevant tax rules. However, the Commission found that the scheme unduly exempted certain multinational groups from these UK rules targeting tax avoidance. This is illegal under EU State aid rules. The UK must now recover the illegal State aid from the multinational companies that benefited from it.
The 2018 State Aid Scoreboard, published today by the European Commission, shows the positive role of State aid policy in steering public support towards objectives of common European interest and confirms the benefits of the State Aid Modernisation package.