Business property renovation

An old factory in my area has been on the market for ages now and the price is now on the floor, so I’ve thought about buying it. I thought I’d read somewhere that there was some specific tax relief available for doing-up rundown buildings- can you tell me more?

1st March 2012

Business Property Renovation Allowance (BPRA) provides a 100% capital allowance to property owners for qualifying capital expenditure incurred on or in connection with the conversion or renovation of a qualifying commercial property.

A property qualifies if it:

  • Is located in a designated development area;
  • Has been unused for at least 12 months before works begin;
  • Has not been used for private residential purposes;
  • Has been used most recently for the purposes of a trade, profession, or as an office; and
  • Is available for letting for use as qualifying business premises once conversion is completed.

HM Revenue & Customs may claw back any BPRA if the building is sold, demolished or ceases to be used for a qualified business purpose within 7 years of first being used after renovation.

But the expenditure must be incurred before 11 April 2012 to qualify, so you don’t have long! If you would like to discuss this further, please feel free to contact your local TaxAssist Accountant.

By Jo Nockels

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