Business Premises Renovation Allowance (BPRA)
Business Premises Renovation Allowance (BPRA) is a special capital allowances scheme that is meant 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 for 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. There is a cap on the amount of expenditure that may qualify for BPRA of €20,000,000 per single investment project.
Recently, HMRC have said that there is evidence that the scheme is being used for tax avoidance. HMRC published a technical note on the subject and are reviewing ways in which the use of the scheme can continue whilst at the same time reducing the risks of exploitation. Comments on the technical note should be sent to HMRC by the end of September. The review is expected to result in new legislation being published next year.