Business Premises Renovation Allowance (BPRA)
The Business Premises Renovation Allowance (BPRA) is a special capital allowances scheme to encourage the conversion and renovation of empty business properties in specified assisted areas (i.e. deprived areas in the UK).
The use of the BPRA provides for a 100% tax deduction on the capital costs a business incurs in converting, renovating or repairing empty business premises that have been vacant for at least a year, in order to bring them back into business use. The relief is available to individuals and partnerships as well as companies.
The BPRA was originally intended to come to an end in April 2012 but was extended for five years. This means that the BPRA will come to an end next year on 31 March 2017 for Corporation Tax and 5 April 2017 for Income Tax.
There are special rules in place to ensure that only the actual direct costs of converting or renovating an unused business premises are relieved under BPRA. These rules reduce the risks of claimants abusing the true intention of the scheme.