1261 - Business Premises Renovation Allowance (BPRA)

The following guidance only applies if you've a 'standard' 12 month accounting period and summarises the allowances available. If your accounting period is shorter or longer than a year, or began before 6 April 2015, or if you want to know more about capital allowances, refer to Help Sheet 252 - Capital allowances and balancing charges (which includes worked examples) or contact HM Revenue and Customs, or your tax adviser.

The Business Premises Renovation Allowance (BPRA) scheme took effect from 11 April 2007 and is due to run until April 2017. You can claim 100% BPRA for the capital costs of converting or renovating or repairs to unused business premises to bring them back into business use, you're entitled to claim a 100% allowance against the costs incurred, subject to the following rules.

To qualify for BPRA, premises must:

• have been unused for at least 1 year before the works began
• have last been used for a business purpose
• be in an Assisted Area that is, an area that is considered to be disadvantaged and eligible for regional aid. The whole of Northern Ireland qualifies as an Assisted Area. To see whether an area in England, Wales, or Scotland qualifies go to www.stats1.bis.gov.uk/regional-aa/aa2007.asp
• be in use or ready and available for use for business or commercial purposes after the works are complete (but must not be used for farming, fisheries and aquaculture, the manufacture of substitute milk products or synthetic fibres, shipbuilding, steel or coal industries; or where the person undertaking the renovation is involved in any of these areas).

BPRA cannot be claimed:

• if the renovation expenditure has been incurred on any residential property
• on the costs of acquiring the land or building, extending the building, or developing land next to the business premises
• from April 2014, to the extent that the expenditure that can qualify for relief under the scheme exceeds a cap of €20 million per project

Further information about BPRA