The UK rebate

The UK is reimbursed 66% of the difference between its contribution to the EU budget (excluding traditional own resources) and the amount it receives back from the budget.

In 2011, the UK rebate amounted to EUR 3.6 billion.

In principle, EU Member States share the cost of the UK rebate in proportion to their relative contribution to the EU GNI. 

However, the financing of the UK correction has been modified over time, granting what is commonly known as 'the rebates on the rebate'  to the traditionally most important net contributors to the EU budget. Since the 2001 UK correction, Germany, Austria, the Netherlands and Sweden pay only 25% of their normal financing share of the UK correction (Germany paid 2/3 of its normal financing in previous years).

The December 2005 European Council decided to adjust the UK correction and agreed that non-agricultural expenditure in the new Member States will no longer be included in its calculation base. This was introduced progressively over the period 2009-2011. The maximum cost to the UK of this measure cannot exceed EUR 10.5 billion (in 2004 prices) over the period 2007-2013.

The current UK rebate was agreed on by the 1984 Fontainebleau European Council.  It has no expiry date.

The UK has already benefitted from similar correction mechanisms since 1976.