Business Premises Renovation Allowance (BPRA)
BPRA gives incentives to bring back into business use derelict or business properties that have been unused for at least one year. It gives an allowance of 100% for certain expenditure you incur when converting or renovating unused business premises in a disadvantaged area.
Expenditure that qualifies for relief includes building works (labour and materials), architectural and design services, surveying or engineering services, planning applications and statutory fees or permissions (building regulation fees or obtaining listed building consent). Expenditure on certain items of plant and machinery also qualifies for relief.
Expenditure on acquiring land, extending a building or developing land next to a building does not qualify for BPRA.
The property does not qualify for BPRA if a person carrying on a relevant trade holds a relevant interest in them or they were previously used or available for use as a dwelling or used wholly or partly for the purposes of a relevant trade.
The disadvantaged areas are specified by the Assisted Areas Order 2014 and can be located by visiting www.ukassistedareasmap.com and entering the postcode for the property
The BPRA ends on 31 March 2017 for corporation tax and 5 April 2017 for income tax.
Stephen Brownwood is a Corporate Senior Manager at Moore and Smalley. For more information contact Stephen on 01253 404404.