February 10th, 2017 / Insight posted in Articles

Final call for Business Premises Renovation Allowance (BPRA)

BPRA was introduced in April 2007. It is a 100% tax allowance for certain spending for businesses converting or renovating unused qualifying business premises in a disadvantaged area.

Spending that qualifies for relief includes:

  • building work, for example, the cost of labour and materials;
  • architectural and design services, for example, the detailed design of the building and its future layout;
  • surveying or engineering services, for example, services to check the structure of the building or specialist checks for asbestos;
  • planning applications, for example, the costs of getting essential planning permissions to alter a listed building;
  • statutory fees and statutory permissions, for example, the costs of building regulation fees, or getting listed building consent.

Disadvantaged areas included areas in Great Britain specified by the Assisted Areas Order 2014 (SI 2014/1508) and in Northern Ireland.

BPRA can be a very useful relief for developers who engage in such projects. The allowance is scheduled to cease on 31 March 2017 for Corporation Tax, and 5 April 2017 for Income Tax – developers who were planning to use BPRA on existing or future projects should have assessed how this change will affect them, and in particular the impact on the profitability and cash flow of projects.  If this has not been undertaken this work should be completed as a matter of urgency.