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
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.