Budget 2014 – 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 capitalcosts 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.
As part of the Budget measures, legislation will be introduced in Finance Bill 2014 to clarify the scope of BPRA and ensure that it is limited to building and renovation works and associated services. This measure will help ensure that only the actual direct costs of converting or renovating an unused business premises are relieved under BPRA. It will also allow the use of the scheme to continue whilst reducing the risks of abuse.