Capital allowances - business premises renovation allowance
The business premises renovation allowance (BPRA) is a 100% first year allowance available for expenditure on converting or renovating unused business premises in a disadvantaged area, incurred in the five year period from 11 April 2007. As announced at Budget 2011, the BPRA scheme will be extended a further 5 years to April 2017.
Who will be affected?
Businesses investing in the renovation of commercial properties in disadvantaged areas that have been vacant for a period of 12 months or more prior to renovation.
This measure will be implemented in Finance Bill 2012.
According to HMRC estimates, the take-up of the BPRA has been very limited, with
a total value of the relief at approximately £20 million per year. In this
context, it is surprising to see this relief being the only one of 44 reliefs
previously recommended for abolition by the Office of Tax Simplification that
has been retained.