1036 - Balancing charge on sale or cessation of business use (only where BPRA has been claimed before)

To avoid a potential balancing charge on a disposal, premises on which Business Premises Renovation Allowance (BPRA) has been claimed must be held for at least 7 years from the date the premises were first used or were suitable for letting. However if within that period:

• the premises are sold or a long lease is granted for a capital sum, or
• the premises cease to be used for business activities, or
• the premises are demolished or destroyed, or
• the person who incurred the renovation costs dies and the proceeds from that disposal exceed any balance of unrelieved expenditure

a balancing charge will arise.

The amount of that charge will be the relevant proceeds from the disposal event, less any residue of unrelieved expenditure (or the proceeds if that residue is nil). This amount must be entered here.