Business Premises Renovation Allowance

Business Premises Renovation Allowance

Business Premises Renovation Allowance (BPRA) is an extremely valuable relief available to taxpayers, but it is currently woefully under utilised. Qualifying for BPRA means that where certain types of expenditure is incurred in bringing a disused commercial property back into use, 100% tax relief can be claimed – and all in addition to ordinary Capital Allowances.

BPRA is designed to promote development and regeneration in locations which may otherwise be overlooked by investors. The relief works by applying 100% tax relief to expenditure incurred in renovating qualifying properties within these areas, which may otherwise be restricted or disallowed under the normal rules.

Limited in scope? 

As relief is restricted to designated areas only, BPRA may seem to be limited in scope for taxpayers. However it is important to note that large numbers of these areas do fall within the North West, meaning that there are plenty of opportunities for local businesses to claim the relief. Qualifying areas include:

  • Parts of Liverpool
  • St Helens
  • Bolton
  • Knowsley
  • Wigan
  • West Lancashire
  • Wirral
  • North Wales

There are also many other qualifying areas throughout the UK.

How does a property qualify for BPRA? 

As with any tax relief, there are several conditions that must be met in order to qualify for the allowance. To qualify, the property must:

  • Be commercial and must have last been used for the purposes of a trade, profession, vocation or as offices;
  • Have been unused for 1 year before renovation costs are incurred to bring it back into use for the purposes of trade, profession, vocation or as offices;
  • Not have last been used as, or part of a dwelling;
  • Be in a designated area at the date that the expenditure is incurred.

Benefits

With any claims for tax relief, it is extremely important to consider time limits. If you believe you may be eligible to make a claim for BPRA, the sooner you begin the process the more likely you will be to receive any available tax relief.

For businesses and individuals, the cash flow advantages of successfully making a claim can be significant.

Next steps 

If you think you might be eligible to make a claim for BPRA, or are considering buying a commercial property in one of the designated areas, please contact us for assistance. We would be happy to assist in reviewing your situation and making a claim to HM Revenue & Customs.

For further information please contact:

Steve Crompton
Partner - Head of Tax
direct dial: 01942 292541
email: steve.crompton@jsllp.co.uk

Chris Barrington
Tax Partner
direct dial: 01942 292505
email: chris.barrington@jsllp.co.uk

 

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