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UK – EU Transition, and UK Civil Aviation Regulations

To access current UK civil aviation regulations, including AMC and GM, CAA regulatory documents, please use this link to UK Regulation. Please note, if you use information and guidance under the Headings below, the references to EU regulations or EU websites in our guidance will not be an accurate information or description of your obligations under UK law. These pages are undergoing reviews and updates.

When a decision cannot be reached by the Decision Board

Where consensus on the prioritisation and/or allocation of funds cannot be reached by the ASF Decision Board, the matter will be escalated to the Joint DfT/CAA AMS Co-Sponsor Programme Board for guidance on making a final decision.

Close When a decision cannot be reached by the Decision Board

Project closure

Project closure will be based on submission of a Project Completion Report, in line with the funding proposal documentation and the Statement of Works (SoW).

Close Project closure

Next call for proposals

CAA intends to issue two calls a year, one in Spring and one in Autumn. Since we issued a call in September 2021, the next call is expected in March/April 2022.

Close Next call for proposals

Unsuccessful applications

Based on feedback received following an unsuccessful application, the applicant has the opportunity to submit a revised application in the next call round

Close Unsuccessful applications

Airline representation on the Decision Board

The ASF is funded through the UK State En-route unit rate for commercial air transport and has been agreed for the period 01 January 2020 to 31 December 2024. Any funds not invested or allocated to specific projects will be returned to airlines through an adjustment to the unit rate in the following reference period. This may need to be adjusted in light of a move away from the five year reference period to Dec 2024 to align with a new reference period covering 2023 to 2027.

Close Airline representation on the Decision Board

Stakeholder engagement and support for proposals

In accordance with the process set out in this document, each funding proposal will require engagement with and endorsement from industry stakeholders prior to fund application.

Each applicant must present a clear evidence-based business case needs to the Advisory Board, highlighting its relevance to (one of) the AMS initiatives. For example, addressing a gap in funding for research and development studies or delivering on elements of enabling works to improve the benefits delivered by a specific AMS initiative.
The Advisory Board will assess on a case by case basis whether the stakeholder engagement and endorsement has been achieved before it's been considered further.

Close Stakeholder engagement and support for proposals

Missed deadline

Applications that are submitted after the deadline announced by CAA will not be considered and would have to be resubmitted in the next call round.

Close Missed deadline

Opportunity to improve submitted proposals

Once an application has been received by the CAA, the Advisory Board will work with applicants and provide feedback on how their proposals can be improved. Applicants can take this feedback on board and make changes to their proposal before the deadline.

Close Opportunity to improve submitted proposals

Presentation on proposals

Depending on the recommendations made by the Advisory Board, the Decision Board may ask the relevant proposer for a presentation on their proposal if needed.

Close Presentation on proposals

AMS review and its impact on proposal assessment

The CAA has committed to reviewing and revising the AMS in 2021, to reflect impacts of the COVID-19 pandemic on the aviation industry, outcomes of the UK-EU Transition and to capture requirements of emerging new stakeholders. Whilst the main focus of the review will be on the overarching vision and objectives, CAA anticipates that some rationalisation of the current initiatives, in terms of their form and format in the AMS, may also need to occur; but no changes will be made that could undermine modernisation activity already underway.

Close AMS review and its impact on proposal assessment

Eligible applicants

Only funding proposals from registered businesses or organisations with a verifiable UK bank account will be considered, so not from individuals. CAA will independently verify the bank account details.

Close Eligible applicants

Payments

Payments from the Fund will be facilitated through the ASF Claims Process. Project sponsors will have to submit appropriate evidence of milestone completion and any relevant invoices to support the claim. Payments will be made directly to the successful applicants' (project sponsors') pre-approved bank account and not to any third-party suppliers.

The full funding amount will be agreed in the SoW, but a 10% contingency fee is accounted for and can be accessed upon request to and permission from the CAA.

Close Payments

Recovery of VAT

The CAA has decided to award a grant for Airspace Modernisation Strategy (AMS). This grant is administrated by the CAA in form of The AMS Support Fund. The grant shall take the form of reimbursement of eligible direct costs incurred. For more detail on the definition of ‘eligible costs’ please see the section below.

Request for release of funds should include VAT costs where applicable, but the CAA will only grant costs exclusive of VAT. We grant costs exclusive of VAT but the application form will ask for three numbers:

  • Net cost (VAT exclusive cost)
  • VAT amount
  • Gross cost (VAT inclusive)

A copy of a supporting invoice from a third party showing these three elements is required. Once all of the above is provided we will grant only the net element but we will have a complete view of the costs for transparency and any potential future audit purposes. 

Close Recovery of VAT

Definition of 'eligible costs'

Eligible direct costs are costs actually incurred by the grant applicant which meet the following criteria:

  • they are incurred in the period of the grant distribution,
  • they are incurred in connection with the AMS Support fund project
  • they are identifiable and verifiable, in particular being recorded in the accounting records of the beneficiary and determined according to the applicable accounting standards in the UK
  • they comply with the requirements of applicable tax and National Insurance Contributions legislation in the UK
  • they are reasonable, justified and comply with the principle of sound management in particular regarding economy and efficiency.  

Eligible direct costs are those specific direct costs which are directly linked to the implementation of the AMS projects and can therefore be attributed directly to it. In particular the following costs are considered eligible direct costs:

  • the costs of personnel working under an employment contract with the applicant, comprising actual salaries plus National Insurance contributions costs provided that these costs are in line with the beneficiaries usual policy on remuneration;
  • costs of travel and related subsistence provided these costs are in line with the grant applicants usual travel policy
  • cost of consumables, equipment and supplies directly assigned to the AMS project
  • costs entailed by service contracts, including services purchased in connection with the AMS project as well as cost of securing third party advice and support to deliver the AMS project*

Indirect Costs are those which are not specific to the task to be delivered and are therefore not directly attributable to the task. Indirect costs shall not be eligible.

Claims for reimbursement of Eligible direct costs under the AMS grant will be submitted to the CAA through a Request for Release of Funds letter, a copy of which is on the AMS Support Fund website.

*The third party costs incurred in delivery of the work described in the AMS project Request for Release of Funds letter can include subcontracted third party costs only if supported by a subcontractor’s VAT invoice as raised to the grant applicant for payment. Such third party invoices must be attached to the grant claim letter as proof of third party costs actually being incurred. The grant distribution will only reimburse the net amount of third party invoices, the VAT element of third party invoices is considered not eligible for reimbursement under the AMS grant.

Close Definition of 'eligible costs'

For any questions, please email airspace.modernisation@caa.co.uk

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