Business Premises Renovation Allowance
I thought it might be a good time to remind you of a valuable tax relief from the Government. This is Business Premises Renovation Allowance (BPRA).
This applies to capital expenditure incurred before 31 March 2017.
You obtain a 100% up front tax relief for the costs of renovating or converting unused business property in any of the 2,000 areas of the UK currently designated as disadvantaged.
Allowances are due to the person claiming the expenditure.
However please note that the allowances can be clawed back if there is a sale within seven years of the property being brought back into use.
To qualify for BPRA there are three conditions:
- Qualifying expenditure must be incurred
- Expenditure must be on a qualifying building
- The person must have the relevant interest in that building
Qualifying expenditure is expenditure that has been incurred on:
- The conversion or renovation of a qualifying building into a qualifying business premises;
- Repairs to a qualifying building;
- Expenditure on building works;
- Expenditure on architectural or design services;
- Expenditure on surveying or engineering services’
- Expenditure on planning applications or
- Expenditure on statutory fees or statutory permissions.
Please note that the allowance does NOT apply to land or rights over land, or extensions.
A qualifying building is on that is:
- Located in a disadvantaged area
- Unused for at least 12 months before work commenced
- Last use for trading purposes, vocation or profession or as an office
- Must not have been used as a dwelling
Please note that the following trade sectors are disqualified from claiming BPRA:
- fisheries and aquaculture;
- the coal industry;
- the steel industry;
- synthetic fibres;
- the primary production of certain agricultural products; and
- the manufacture and marketing of products which imitate or substitute for milk and milk products.
This is a very valuable and useful relief for expenditure that would ordinarily obtain no tax relief at all. If you think that you may qualify for this relief or have any questions at all then please get in touch with Kelly Quail on 01772 821021.