Business Premises Renovation coming to an end

The Business Premises Renovation Allowance (BPRA) was introduced almost a decade ago and is intended to give relief to those businesses bringing back to life unused business premises in a disadvantaged area which is designated by the Government.

The qualifying expenditure for BPRA purposes includes building costs on:

·         Converting a qualifying building into qualifying business premises.

·         Renovating a qualifying building that is, or is to be, qualifying premises.

It does not include:

·         Acquiring land.

·         Extending a qualifying building.

·         Developing land next to a qualifying building.

Given that the capital allowances claimable on the expenditure are 100% for the year the costs are incurred, it is a significant tax saving so is likely to be of interest to property entrepreneurs or those looking to acquire larger business premises.

Where the full expenditure is not claimed in the first year (perhaps because the capital allowances will wipe out income), any balance unclaimed is claimed at a rate of 25% for each of the next four years.

Certain trades are barred from claiming the relief and it is not available in respect of residential property.

Any business that wishes to take advantage of BPRA should be aware that the scheme closes on 31 March 2017 for companies and 5 April 2017 for unincorporated businesses. Therefore any expenditure will only qualify if it is incurred before that date.

If you have any queries or would like to know more about BPRA or would potentially wish to explore whether any grants may be available, we would recommend that you speak to our grants or tax team today on the following numbers:

Darlington – 01325 349700
Durham – 0191 3842244
York – 01904 784400