Business Premises Renovation Allowances (BPRA)
01 November 2015
BPRA is a 100% first year tax saving on qualifying expenditure. It can be claimed on capital expenditure incurred, on or in connection with, the conversion or renovation of a building, which includes building costs not qualifying for other types of capital allowances.
In order to qualify for BPRA, the building must be:
- Unused for at least 12 months before works begin
- In an Assisted Area Order disadvantaged area when works begin
- Last used as a commercial property and not as a dwelling
- Available to let as a commercial premise, and
- Relief is capped at €20m per project
In addition, the capital expenditure must have been incurred between April 2007 and April 2017 to qualify for BPRA.
The property must be owned and used as a qualifying business premises for at least seven years from the time of first use otherwise there will be an automatic claw back of all of the BPRA allowances previously granted. However these automatic claw back provisions will not apply to the other types of capital allowances available in the event of the property being sold or the qualifying use ceasing.
BPRA is a complex area, and there are no hard and fast rules as to what qualifies - as with capital allowances, it will depend upon the nature of the scheme and the expenditure.
Your next steps
It is imperative to plan your qualifying capital expenditure to maximise the relief available. For help and advice, please contact your usual BDO contact or Bob Miller, Tax Partner, on 0207 893 2722 or email email@example.com.