Business premises renovation allowance - Revision history

Editor at 17:58, 12 January 2024

2024-01-12T17:58:03Z

← Older revision		Revision as of 17:58, 12 January 2024
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	= Introduction =		= Introduction =

−	Business Premises Renovation Allowance (BPRA) was introduced by the Finance Act 2005. The scheme started in April 2007 and ~~ends~~ in March 2017 for Corporation Tax and April 2017 for Income Tax.	+	Business Premises Renovation Allowance (BPRA) was introduced by the Finance Act 2005. The scheme started in April 2007 and ended in March 2017 for Corporation Tax and April 2017 for Income Tax.

−	The Business Premises Renovation Allowance ~~allows~~ business investors to claim tax allowances for 100% of the amount invested when empty business premises ~~are~~ converted or renovated back into usable condition. It is designed to act as an incentive to bringing back derelict or unused business properties that have not been used for at least a year.	+	The Business Premises Renovation Allowance allowed business investors to claim tax allowances for 100% of the amount invested when empty business premises were converted or renovated back into usable condition. It was designed to act as an incentive to bringing back derelict or unused business properties that have not been used for at least a year.

	Disadvantaged areas include Northern Ireland and areas that are specified in the [http://www.legislation.gov.uk/en/uksi/2014/1508/made Assisted Areas Order 2014] for Great Britain.		Disadvantaged areas include Northern Ireland and areas that are specified in the [http://www.legislation.gov.uk/en/uksi/2014/1508/made Assisted Areas Order 2014] for Great Britain.

Designing Buildings at 08:41, 8 November 2020

2020-11-08T08:41:26Z

← Older revision		Revision as of 08:41, 8 November 2020
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−	= ~~<br />~~	+	= Introduction =
−	Introduction =	+

	Business Premises Renovation Allowance (BPRA) was introduced by the Finance Act 2005. The scheme started in April 2007 and ends in March 2017 for Corporation Tax and April 2017 for Income Tax.		Business Premises Renovation Allowance (BPRA) was introduced by the Finance Act 2005. The scheme started in April 2007 and ends in March 2017 for Corporation Tax and April 2017 for Income Tax.

Designing Buildings at 08:40, 8 November 2020

2020-11-08T08:40:59Z

← Older revision		Revision as of 08:40, 8 November 2020
Line 1:		Line 1:
		+	= <br />
		+	Introduction =

−	~~= <br/>'''Introduction''' =~~	+	Business Premises Renovation Allowance (BPRA) was introduced by the Finance Act 2005. The scheme started in April 2007 and ends in March 2017 for Corporation Tax and April 2017 for Income Tax.

−	~~Business Premises Renovation Allowance (BPRA) was introduced by the Finance Act 2005. The scheme started in April 2007 and ends in March 2017 for Corporation Tax and April 2017 for Income Tax. <br/>~~	+	The Business Premises Renovation Allowance allows business investors to claim tax allowances for 100% of the amount invested when empty business premises are converted or renovated back into usable condition. It is designed to act as an incentive to bringing back derelict or unused business properties that have not been used for at least a year.
−		+
−	The Business Premises Renovation Allowance allows business investors to claim tax allowances for 100% of the amount invested when empty business premises are converted or renovated back into usable condition. It is designed to act as an incentive to bringing back derelict or unused business properties that have not been used for at least a year.	+

	Disadvantaged areas include Northern Ireland and areas that are specified in the [http://www.legislation.gov.uk/en/uksi/2014/1508/made Assisted Areas Order 2014] for Great Britain.		Disadvantaged areas include Northern Ireland and areas that are specified in the [http://www.legislation.gov.uk/en/uksi/2014/1508/made Assisted Areas Order 2014] for Great Britain.

−	= ~~'''~~Conditions~~'''~~ =	+	= Conditions =

−	A person must incur 'qualifying expenditure' in order to claim BPRA.<br/><br/>Qualifying expenditure is capital expenditure on:	+	A person must incur 'qualifying expenditure' in order to claim BPRA.<br />
−	*Converting a qualifying building into qualifying business premises.	+	<br />
−	*Renovating a qualifying building that is, or will be, qualifying business premises.	+	Qualifying expenditure is capital expenditure on:
−	*Repairs to qualifying business premises.	+
		+	* Converting a qualifying building into qualifying business premises.
		+	* Renovating a qualifying building that is, or will be, qualifying business premises.
		+	* Repairs to qualifying business premises.

	The specific expenditure that qualifies is:		The specific expenditure that qualifies is:
−	*Building works which includes the cost of labour and materials.	+
−	*Architectural and design services which includes the detailed design of the building and its future layout.	+	* Building works which includes the cost of labour and materials.
−	*Surveying or engineering services, which could include for example an asbestos survey or services to check the structure of a building.	+	* Architectural and design services which includes the detailed design of the building and its future layout.
−	*Statutory fees and permissions, for example building regulations fees or getting listed building consent.	+	* Surveying or engineering services, which could include for example an asbestos survey or services to check the structure of a building.
−	*Planning applications, for example the costs of obtaining planning permissions to alter a listed building.	+	* Statutory fees and permissions, for example building regulations fees or getting listed building consent.
		+	* Planning applications, for example the costs of obtaining planning permissions to alter a listed building.

	Expenditure on the following items of machinery and plant qualifies for relief:		Expenditure on the following items of machinery and plant qualifies for relief:
−	*Integral features within the meaning of section 33A Capital Allowances Act 2001.
−	*Window cleaning installations.
−	*Automatic control systems for opening and closing doors, windows and vents.
−	*Fitted cupboards and blinds.
−	*Protective installations such as lightning protection, sprinkler and other equipment for containing or fighting fires, fire alarm systems and fire escapes.
−	*Building management systems (computer-based control system installed in buildings that control and monitor the building’s mechanical and electrical equipment such as: ventilation, lighting, power systems, fire systems and security systems.
−	*Cabling for telephone, audio-visual data installations and computer networking facilities which are incidental to the occupation of the building.
−	*Sanitary appliances and bathroom fittings including: hand driers, counters, partitions, mirrors and shower facilities.
−	*Kitchen and catering facilities for producing and storing food and drink for the occupants of the building.
−	*Signs.
−	*Intruder alarm systems.
−	*Public address systems.

−	~~Expenditure only qualifies for BPRA if~~ the ~~building is situated in a disadvantaged area~~ and ~~has been unused~~ for ~~a year immediately before the conversion~~ or ~~renovation begins~~. ~~The last use must not have been~~ as ~~a dwelling~~.~~<br/><br/>A 'qualifying~~ building~~' is a commercial building or structure situated in a disadvantaged area~~. ~~'Qualifying business premises' means any building or structure~~, ~~which must be used~~, ~~or available~~ and ~~suitable~~ for ~~use,~~ for the ~~purpose~~ of ~~a trade, profession or vocation, or offices~~.	+	* Integral features within the meaning of section 33A Capital Allowances Act 2001.
		+	* Window cleaning installations.
		+	* Automatic control systems for opening and closing doors, windows and vents.
		+	* Fitted cupboards and blinds.
		+	* Protective installations such as lightning protection, sprinkler and other equipment for containing or fighting fires, fire alarm systems and fire escapes.
		+	* Building management systems (computer-based control system installed in buildings that control and monitor the building’s mechanical and electrical equipment such as: ventilation, lighting, power systems, fire systems and security systems.
		+	* Cabling for telephone, audio-visual data installations and computer networking facilities which are incidental to the occupation of the building.
		+	* Sanitary appliances and bathroom fittings including: hand driers, counters, partitions, mirrors and shower facilities.
		+	* Kitchen and catering facilities for producing and storing food and drink for the occupants of the building.
		+	* Signs.
		+	* Intruder alarm systems.
		+	* Public address systems.

−	The ~~following are~~ '''~~NOT''~~' qualifying business premises:	+	Expenditure only qualifies for BPRA if the building is situated in a disadvantaged area and has been unused for a year immediately before the conversion or renovation begins. The last use must not have been as a dwelling.<br />
−	*Premises used or available for use as a dwelling.	+	<br />
−	*Premises the relevant interest in which is held by a person carrying on a relevant trade.	+	A 'qualifying building' is a commercial building or structure situated in a disadvantaged area. 'Qualifying business premises' means any building or structure, which must be used, or available and suitable for use, for the purpose of a trade, profession or vocation, or offices.
−	*Premises used wholly or partly for the purposes of a relevant trade.	+
		+	The following are NOT qualifying business premises:
		+
		+	* Premises used or available for use as a dwelling.
		+	* Premises the relevant interest in which is held by a person carrying on a relevant trade.
		+	* Premises used wholly or partly for the purposes of a relevant trade.

	A 'relevant trade' is a trade in the following sectors:		A 'relevant trade' is a trade in the following sectors:
−	*Fisheries and aquaculture.	+
−	*Shipbuilding.	+	* Fisheries and aquaculture.
−	*The coal industry.	+	* Shipbuilding.
−	*The steel industry.	+	* The coal industry.
−	*Synthetic fibres.	+	* The steel industry.
−	*The primary production of certain agricultural products.	+	* Synthetic fibres.
−	*The manufacture or marketing of products which imitate or substitute for milk and milk products.	+	* The primary production of certain agricultural products.
		+	* The manufacture or marketing of products which imitate or substitute for milk and milk products.

	Expenditure on acquiring land, extending a building or developing land next to a building does not qualify for BPRA.		Expenditure on acquiring land, extending a building or developing land next to a building does not qualify for BPRA.

−	= ~~'''~~Allowances and charges~~'''~~ =	+	= Allowances and charges =

−	There is an initial allowance equal to 100% of the qualifying expenditure.<br/><br/>If the 100% initial allowance is not claimed, or is not claimed in full, the person that incurred the qualifying expenditure and holds the relevant interest in the qualifying building may claim Writing Down Allowances (WDAs) which are given at an annual rate of 25% on the straight-line basis to the person holding the relevant interest until all the qualifying expenditure has been allowed.<br/><br/>The 'relevant interest' in the building in relation to the qualifying expenditure is the interest to which the person incurring the qualifying expenditure was entitled when the qualifying expenditure was incurred.<br/><br/>There is a 'balancing adjustment' if there is a balancing event within 7 years of the first use of the building after conversion or renovation. A balancing adjustment is a balancing charge or a balancing allowance. The main balancing events are the sale of the relevant interest and the grant of a long lease for a premium out of the relevant interest.	+	There is an initial allowance equal to 100% of the qualifying expenditure.<br />
		+	<br />
		+	If the 100% initial allowance is not claimed, or is not claimed in full, the person that incurred the qualifying expenditure and holds the relevant interest in the qualifying building may claim Writing Down Allowances (WDAs) which are given at an annual rate of 25% on the straight-line basis to the person holding the relevant interest until all the qualifying expenditure has been allowed.<br />
		+	<br />
		+	The 'relevant interest' in the building in relation to the qualifying expenditure is the interest to which the person incurring the qualifying expenditure was entitled when the qualifying expenditure was incurred.<br />
		+	<br />
		+	There is a 'balancing adjustment' if there is a balancing event within 7 years of the first use of the building after conversion or renovation. A balancing adjustment is a balancing charge or a balancing allowance. The main balancing events are the sale of the relevant interest and the grant of a long lease for a premium out of the relevant interest.

−	= ~~'''~~How allowances are given and charges made~~'''~~ =	+	= How allowances are given and charges made =

−	If the person entitled to BPRA has a trade, profession or vocation the allowance is treated as an expense and a balancing charge is treated as income of that trade, profession or vocation.<br/><br/>If the person entitled to BPRA has a property business, that is, if the person is the landlord of the building, the allowance is treated as an expense and a balancing charge is treated as income of that property business.<br/><br/>Where the person entitled to BPRA does not have a trade, profession or vocation or a property business, the person is treated as if they were carrying on a property business (a virtual property business) and the allowance is an expense of that virtual property business. This means that the allowance can be set against the person’s other income. Again, a balancing charge is treated as income of that virtual property business.	+	If the person entitled to BPRA has a trade, profession or vocation the allowance is treated as an expense and a balancing charge is treated as income of that trade, profession or vocation.<br />
		+	<br />
		+	If the person entitled to BPRA has a property business, that is, if the person is the landlord of the building, the allowance is treated as an expense and a balancing charge is treated as income of that property business.<br />
		+	<br />
		+	Where the person entitled to BPRA does not have a trade, profession or vocation or a property business, the person is treated as if they were carrying on a property business (a virtual property business) and the allowance is an expense of that virtual property business. This means that the allowance can be set against the person’s other income. Again, a balancing charge is treated as income of that virtual property business.

	The [http://www.hmrc.gov.uk/manuals/camanual/ca45000.htm HM Revenue and Customs website] has a detailed guide which provides further information on the allowance.		The [http://www.hmrc.gov.uk/manuals/camanual/ca45000.htm HM Revenue and Customs website] has a detailed guide which provides further information on the allowance.

−	= ~~Find out more~~ =	+	= External references =

−	~~=== External references ===~~	+	* For full details go to the [http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm HMRC website].
−	*For full details go to the [http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm HMRC website].	+	* [http://www.legislation.gov.uk/en/uksi/2014/1508/made Assisted Areas Order 2014].
−	*[http://www.legislation.gov.uk/en/uksi/2014/1508/made Assisted Areas Order 2014].	+	* [http://www.hmrc.gov.uk/manuals/camanual/ca45000.htm HM Revenue and Customs Business Premises Renovation Allowance Manual.]
−	*[http://www.hmrc.gov.uk/manuals/camanual/ca45000.htm HM Revenue and Customs Business Premises Renovation Allowance Manual.]	+

−	[[Category:Taxation]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Policy]] [[Category:Taxation]] [[Category:Cost_/_business_planning]]
−	[[Category:Cost_/_business_planning]]	+

Designing Buildings at 15:03, 24 August 2015

2015-08-24T15:03:56Z

← Older revision		Revision as of 15:03, 24 August 2015
Line 2:		Line 2:
	= <br/>'''Introduction''' =		= <br/>'''Introduction''' =

−	Business Premises Renovation Allowance (BPRA) was introduced by the Finance Act 2005. ~~It came into force~~ in 2007 and ~~currently provides~~ for ~~relief on qualifying capital expenditure incurred at any time before~~ April 2017.	+	Business Premises Renovation Allowance (BPRA) was introduced by the Finance Act 2005. The scheme started in April 2007 and ends in March 2017 for Corporation Tax and April 2017 for Income Tax. <br/>

−	~~BPRA~~ is ~~intended~~ to ~~give~~ an incentive to ~~bring~~ derelict or unused properties ~~back into use. Such expenditure must be incurred in~~ a ~~'disadvantaged area'~~.	+	The Business Premises Renovation Allowance allows business investors to claim tax allowances for 100% of the amount invested when empty business premises are converted or renovated back into usable condition. It is designed to act as an incentive to bringing back derelict or unused business properties that have not been used for at least a year.

−	~~BPRA gives an initial allowance of 100% for expenditure on converting or renovating unused business premises.~~	+	Disadvantaged areas include Northern Ireland and areas that are specified in the [http://www.legislation.gov.uk/en/uksi/2014/1508/made Assisted Areas Order 2014] for Great Britain.
−		+
−	~~= '''~~Disadvantaged areas~~''' =~~	+
−		+
−	~~At the time of writing (September 2012) The following~~ areas are ~~considered disadvantaged areas for BPRA:~~	+
−	*Areas specified ~~as development areas by~~ the [http://www.~~opsi~~.gov.uk/si/~~si2007~~/~~uksi_20070107_en.pdf~~ Assisted Areas Order] ~~2007(SI 2007/107)~~	+
−	*Northern Ireland.	+

	= '''Conditions''' =		= '''Conditions''' =
Line 20:		Line 14:
	*Renovating a qualifying building that is, or will be, qualifying business premises.		*Renovating a qualifying building that is, or will be, qualifying business premises.
	*Repairs to qualifying business premises.		*Repairs to qualifying business premises.
		+
		+	The specific expenditure that qualifies is:
		+	*Building works which includes the cost of labour and materials.
		+	*Architectural and design services which includes the detailed design of the building and its future layout.
		+	*Surveying or engineering services, which could include for example an asbestos survey or services to check the structure of a building.
		+	*Statutory fees and permissions, for example building regulations fees or getting listed building consent.
		+	*Planning applications, for example the costs of obtaining planning permissions to alter a listed building.
		+
		+	Expenditure on the following items of machinery and plant qualifies for relief:
		+	*Integral features within the meaning of section 33A Capital Allowances Act 2001.
		+	*Window cleaning installations.
		+	*Automatic control systems for opening and closing doors, windows and vents.
		+	*Fitted cupboards and blinds.
		+	*Protective installations such as lightning protection, sprinkler and other equipment for containing or fighting fires, fire alarm systems and fire escapes.
		+	*Building management systems (computer-based control system installed in buildings that control and monitor the building’s mechanical and electrical equipment such as: ventilation, lighting, power systems, fire systems and security systems.
		+	*Cabling for telephone, audio-visual data installations and computer networking facilities which are incidental to the occupation of the building.
		+	*Sanitary appliances and bathroom fittings including: hand driers, counters, partitions, mirrors and shower facilities.
		+	*Kitchen and catering facilities for producing and storing food and drink for the occupants of the building.
		+	*Signs.
		+	*Intruder alarm systems.
		+	*Public address systems.

	Expenditure only qualifies for BPRA if the building is situated in a disadvantaged area and has been unused for a year immediately before the conversion or renovation begins. The last use must not have been as a dwelling.<br/><br/>A 'qualifying building' is a commercial building or structure situated in a disadvantaged area. 'Qualifying business premises' means any building or structure, which must be used, or available and suitable for use, for the purpose of a trade, profession or vocation, or offices.		Expenditure only qualifies for BPRA if the building is situated in a disadvantaged area and has been unused for a year immediately before the conversion or renovation begins. The last use must not have been as a dwelling.<br/><br/>A 'qualifying building' is a commercial building or structure situated in a disadvantaged area. 'Qualifying business premises' means any building or structure, which must be used, or available and suitable for use, for the purpose of a trade, profession or vocation, or offices.
Line 46:		Line 61:

	If the person entitled to BPRA has a trade, profession or vocation the allowance is treated as an expense and a balancing charge is treated as income of that trade, profession or vocation.<br/><br/>If the person entitled to BPRA has a property business, that is, if the person is the landlord of the building, the allowance is treated as an expense and a balancing charge is treated as income of that property business.<br/><br/>Where the person entitled to BPRA does not have a trade, profession or vocation or a property business, the person is treated as if they were carrying on a property business (a virtual property business) and the allowance is an expense of that virtual property business. This means that the allowance can be set against the person’s other income. Again, a balancing charge is treated as income of that virtual property business.		If the person entitled to BPRA has a trade, profession or vocation the allowance is treated as an expense and a balancing charge is treated as income of that trade, profession or vocation.<br/><br/>If the person entitled to BPRA has a property business, that is, if the person is the landlord of the building, the allowance is treated as an expense and a balancing charge is treated as income of that property business.<br/><br/>Where the person entitled to BPRA does not have a trade, profession or vocation or a property business, the person is treated as if they were carrying on a property business (a virtual property business) and the allowance is an expense of that virtual property business. This means that the allowance can be set against the person’s other income. Again, a balancing charge is treated as income of that virtual property business.
		+
		+	The [http://www.hmrc.gov.uk/manuals/camanual/ca45000.htm HM Revenue and Customs website] has a detailed guide which provides further information on the allowance.

	= Find out more =		= Find out more =
Line 51:		Line 68:
	=== External references ===		=== External references ===
	*For full details go to the [http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm HMRC website].		*For full details go to the [http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm HMRC website].
		+	*[http://www.legislation.gov.uk/en/uksi/2014/1508/made Assisted Areas Order 2014].
		+	*[http://www.hmrc.gov.uk/manuals/camanual/ca45000.htm HM Revenue and Customs Business Premises Renovation Allowance Manual.]

	[[Category:Taxation]]		[[Category:Taxation]]
−	~~[[Category:Cost_/_business_planning]]~~
	[[Category:Cost_/_business_planning]]		[[Category:Cost_/_business_planning]]

Designing Buildings: moved Business Premises Renovation Allowance to Business premises renovation allowance

2013-09-27T07:14:06Z

moved Business Premises Renovation Allowance to Business premises renovation allowance

← Older revision

Revision as of 07:14, 27 September 2013

Designing Buildings at 06:59, 10 June 2013

2013-06-10T06:59:37Z

← Older revision		Revision as of 06:59, 10 June 2013
Line 53:		Line 53:

	[[Category:Taxation]]		[[Category:Taxation]]
		+	[[Category:Cost_/_business_planning]]
		+	[[Category:Cost_/_business_planning]]

Designing Buildings at 06:59, 10 June 2013

2013-06-10T06:59:09Z

← Older revision		Revision as of 06:59, 10 June 2013
Line 1:		Line 1:
		+
	= <br/>'''Introduction''' =		= <br/>'''Introduction''' =

Line 10:		Line 11:

	At the time of writing (September 2012) The following areas are considered disadvantaged areas for BPRA:		At the time of writing (September 2012) The following areas are considered disadvantaged areas for BPRA:
−
	*Areas specified as development areas by the [http://www.opsi.gov.uk/si/si2007/uksi_20070107_en.pdf Assisted Areas Order] 2007(SI 2007/107)		*Areas specified as development areas by the [http://www.opsi.gov.uk/si/si2007/uksi_20070107_en.pdf Assisted Areas Order] 2007(SI 2007/107)
	*Northern Ireland.		*Northern Ireland.
Line 17:		Line 17:

	A person must incur 'qualifying expenditure' in order to claim BPRA.<br/><br/>Qualifying expenditure is capital expenditure on:		A person must incur 'qualifying expenditure' in order to claim BPRA.<br/><br/>Qualifying expenditure is capital expenditure on:
−
	*Converting a qualifying building into qualifying business premises.		*Converting a qualifying building into qualifying business premises.
	*Renovating a qualifying building that is, or will be, qualifying business premises.		*Renovating a qualifying building that is, or will be, qualifying business premises.
Line 25:		Line 24:

	The following are '''NOT''' qualifying business premises:		The following are '''NOT''' qualifying business premises:
−
	*Premises used or available for use as a dwelling.		*Premises used or available for use as a dwelling.
	*Premises the relevant interest in which is held by a person carrying on a relevant trade.		*Premises the relevant interest in which is held by a person carrying on a relevant trade.
Line 31:		Line 29:

	A 'relevant trade' is a trade in the following sectors:		A 'relevant trade' is a trade in the following sectors:
−
	*Fisheries and aquaculture.		*Fisheries and aquaculture.
	*Shipbuilding.		*Shipbuilding.
Line 50:		Line 47:
	If the person entitled to BPRA has a trade, profession or vocation the allowance is treated as an expense and a balancing charge is treated as income of that trade, profession or vocation.<br/><br/>If the person entitled to BPRA has a property business, that is, if the person is the landlord of the building, the allowance is treated as an expense and a balancing charge is treated as income of that property business.<br/><br/>Where the person entitled to BPRA does not have a trade, profession or vocation or a property business, the person is treated as if they were carrying on a property business (a virtual property business) and the allowance is an expense of that virtual property business. This means that the allowance can be set against the person’s other income. Again, a balancing charge is treated as income of that virtual property business.		If the person entitled to BPRA has a trade, profession or vocation the allowance is treated as an expense and a balancing charge is treated as income of that trade, profession or vocation.<br/><br/>If the person entitled to BPRA has a property business, that is, if the person is the landlord of the building, the allowance is treated as an expense and a balancing charge is treated as income of that property business.<br/><br/>Where the person entitled to BPRA does not have a trade, profession or vocation or a property business, the person is treated as if they were carrying on a property business (a virtual property business) and the allowance is an expense of that virtual property business. This means that the allowance can be set against the person’s other income. Again, a balancing charge is treated as income of that virtual property business.

−	= ~~See also~~ =	+	= Find out more =

		+	=== External references ===
	*For full details go to the [http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm HMRC website].		*For full details go to the [http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm HMRC website].
−
−	~~[[Category:Taxation]]~~

	[[Category:Taxation]]		[[Category:Taxation]]

2.25.36.246 at 05:45, 2 October 2012

2012-10-02T05:45:46Z

← Older revision		Revision as of 05:45, 2 October 2012
Line 14:		Line 14:
	*Northern Ireland.		*Northern Ireland.

−	= ~~<br/>~~'''Conditions''' =	+	= '''Conditions''' =

	A person must incur 'qualifying expenditure' in order to claim BPRA.<br/><br/>Qualifying expenditure is capital expenditure on:		A person must incur 'qualifying expenditure' in order to claim BPRA.<br/><br/>Qualifying expenditure is capital expenditure on:
Line 42:		Line 42:
	Expenditure on acquiring land, extending a building or developing land next to a building does not qualify for BPRA.		Expenditure on acquiring land, extending a building or developing land next to a building does not qualify for BPRA.

−	= ~~<br/><br/>~~'''Allowances and charges''' =	+	= '''Allowances and charges''' =

−	~~<br/><br/>~~There is an ~~'''~~initial allowance ~~'''~~ equal to 100% of the qualifying expenditure.<br/><br/>If the 100% initial allowance is not claimed, or is not claimed in full, the person that incurred the qualifying expenditure and holds the relevant interest in the qualifying building ~~in relation to the qualifying expenditure~~ may claim ~~writing down allowances~~ (WDAs) which are given at an annual rate of 25% on the straight line basis to the person holding the relevant interest until all the qualifying expenditure has been allowed.<br/><br/>The '''relevant interest''' in the building in relation to the qualifying expenditure is the interest to which the person incurring the qualifying expenditure was entitled when the qualifying expenditure was incurred.<br/><br/>There is a balancing adjustment if there is a balancing event within 7 years of the first use of the building after conversion or renovation. A ~~'''~~balancing adjustment~~'''~~ is a balancing charge or a balancing allowance. The main balancing events are the sale of the relevant interest and the grant of a long lease for a premium out of the relevant interest.	+	There is an initial allowance equal to 100% of the qualifying expenditure.<br/><br/>If the 100% initial allowance is not claimed, or is not claimed in full, the person that incurred the qualifying expenditure and holds the relevant interest in the qualifying building may claim Writing Down Allowances (WDAs) which are given at an annual rate of 25% on the straight-line basis to the person holding the relevant interest until all the qualifying expenditure has been allowed.<br/><br/>The 'relevant interest' in the building in relation to the qualifying expenditure is the interest to which the person incurring the qualifying expenditure was entitled when the qualifying expenditure was incurred.<br/><br/>There is a 'balancing adjustment' if there is a balancing event within 7 years of the first use of the building after conversion or renovation. A balancing adjustment is a balancing charge or a balancing allowance. The main balancing events are the sale of the relevant interest and the grant of a long lease for a premium out of the relevant interest.

	= '''How allowances are given and charges made''' =		= '''How allowances are given and charges made''' =

−	~~<br/><br/>~~If the person entitled to BPRA has a trade, profession or vocation the allowance is treated as an expense and a balancing charge is treated as income of that trade, profession or vocation.<br/><br/>If the person entitled to BPRA has a property business, that is if the person is the landlord of the building, the allowance is treated as an expense and a balancing charge is treated as income of that property business.<br/><br/>Where the person entitled to BPRA does not have a trade, profession or vocation or a property business the person is treated as if ~~he, she or it~~ were carrying on a property business (a virtual property business) and the allowance is an expense of that virtual property business. This means that the allowance can be set against the person’s other income. Again, a balancing charge is treated as income of that virtual property business.	+	If the person entitled to BPRA has a trade, profession or vocation the allowance is treated as an expense and a balancing charge is treated as income of that trade, profession or vocation.<br/><br/>If the person entitled to BPRA has a property business, that is, if the person is the landlord of the building, the allowance is treated as an expense and a balancing charge is treated as income of that property business.<br/><br/>Where the person entitled to BPRA does not have a trade, profession or vocation or a property business, the person is treated as if they were carrying on a property business (a virtual property business) and the allowance is an expense of that virtual property business. This means that the allowance can be set against the person’s other income. Again, a balancing charge is treated as income of that virtual property business.

	= See also =		= See also =

−	For full details go to the [http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm HMRC website].	+	*For full details go to the [http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm HMRC website].

	[[Category:Taxation]]		[[Category:Taxation]]

	[[Category:Taxation]]		[[Category:Taxation]]

2.25.36.246 at 05:39, 2 October 2012

2012-10-02T05:39:52Z

← Older revision		Revision as of 05:39, 2 October 2012
Line 1:		Line 1:
−	'''~~Business Premises Renovation Allowance (BPRA)~~'''	+	= <br/>'''Introduction''' =

−	~~<br/>'''Introduction'''<br/><br/>~~Business Premises Renovation Allowance ( ~~'''~~BPRA~~'''~~) was introduced by Finance Act 2005 ~~and~~ came into force in 2007 and currently provides for relief on qualifying capital expenditure incurred at any time before April 2017.	+	Business Premises Renovation Allowance (BPRA) was introduced by the Finance Act 2005. It came into force in 2007 and currently provides for relief on qualifying capital expenditure incurred at any time before April 2017.

−	BPRA is intended to give an incentive to bring derelict or unused properties back into use. Such expenditure must be incurred in a ~~“disadvantaged area”~~	+	BPRA is intended to give an incentive to bring derelict or unused properties back into use. Such expenditure must be incurred in a 'disadvantaged area'.

	BPRA gives an initial allowance of 100% for expenditure on converting or renovating unused business premises.		BPRA gives an initial allowance of 100% for expenditure on converting or renovating unused business premises.

−	~~<br/>~~'''Disadvantaged areas'''~~<br/><br/>At the time of writing (September 2012) The following are the areas that are disadvantaged areas for BPRA.~~	+	= '''Disadvantaged areas''' =

−	*Areas specified as development areas by the Assisted Areas Order 2007(SI 2007/107)	+	At the time of writing (September 2012) The following areas are considered disadvantaged areas for BPRA:
		+
		+	*Areas specified as development areas by the [http://www.opsi.gov.uk/si/si2007/uksi_20070107_en.pdf Assisted Areas Order] 2007(SI 2007/107)
	*Northern Ireland.		*Northern Ireland.

−	~~For the Assisted Areas Order 2007 go~~ to ~~[http://www~~.~~opsi.gov.uk~~/si/~~si2007/uksi_20070107_en.pdf http~~:~~//www~~.~~opsi~~.~~gov.uk/si/si2007/uksi_20070107_en~~.~~pdf]~~	+	= <br/>'''Conditions''' =
		+
		+	A person must incur 'qualifying expenditure' in order to claim BPRA.<br/><br/>Qualifying expenditure is capital expenditure on:
		+
		+	*Converting a qualifying building into qualifying business premises.
		+	*Renovating a qualifying building that is, or will be, qualifying business premises.
		+	*Repairs to qualifying business premises.

−	~~<br/>'''Conditions'''~~<br/><br/>A ~~person must incur~~ qualifying ~~expenditure~~ in ~~order to claim BPRA~~.~~<br/><br/>''~~'Qualifying ~~expenditure~~'~~'' is capital expenditure on~~	+	Expenditure only qualifies for BPRA if the building is situated in a disadvantaged area and has been unused for a year immediately before the conversion or renovation begins. The last use must not have been as a dwelling.<br/><br/>A 'qualifying building' is a commercial building or structure situated in a disadvantaged area. 'Qualifying business premises' means any building or structure, which must be used, or available and suitable for use, for the purpose of a trade, profession or vocation, or offices.

−	*converting a qualifying building into qualifying business premises, or	+	The following are '''NOT''' qualifying business premises:
−	*renovating a qualifying building that is, or will be, qualifying business premises, or	+
−	*repairs to qualifying business premises.	+

−	~~Expenditure only qualifies~~ for ~~BPRA if the building is situated in a disadvantaged area and has been unused for a year immediately before the conversion or renovation begins. The last~~ use ~~must not have been~~ as a dwelling.~~<br/><br/>A '''qualifying building'''~~ is a ~~commercial building~~ or ~~structure situated in~~ a ~~disadvantaged area~~.~~<br/><br/>~~	+	*Premises used or available for use as a dwelling.
		+	*Premises the relevant interest in which is held by a person carrying on a relevant trade.
		+	*Premises used wholly or partly for the purposes of a relevant trade.

−	'~~Qualifying Business Premises~~' ~~means any building or structure, which must be used, or available and suitable for use, for the purpose of~~ a trade~~, profession or vocation, or offices~~	+	A 'relevant trade' is a trade in the following sectors:

−	The ~~following are '''not''' qualifying business premises~~	+	*Fisheries and aquaculture.
		+	*Shipbuilding.
		+	*The coal industry.
		+	*The steel industry.
		+	*Synthetic fibres.
		+	*The primary production of certain agricultural products.
		+	*The manufacture or marketing of products which imitate or substitute for milk and milk products.

−	~~Premises~~	+	Expenditure on acquiring land, extending a building or developing land next to a building does not qualify for BPRA.

−	*used or available for use as a dwelling	+	= <br/><br/>'''Allowances and charges''' =
−	*the relevant interest in which is held by a person carrying on a relevant trade or	+
−	*used wholly or partly for the purposes of a relevant trade.	+

−	'''A relevant ~~trade~~''' is a ~~trade in~~ the ~~following sectors –~~	+	<br/><br/>There is an '''initial allowance ''' equal to 100% of the qualifying expenditure.<br/><br/>If the 100% initial allowance is not claimed, or is not claimed in full, the person that incurred the qualifying expenditure and holds the relevant interest in the qualifying building in relation to the qualifying expenditure may claim writing down allowances (WDAs) which are given at an annual rate of 25% on the straight line basis to the person holding the relevant interest until all the qualifying expenditure has been allowed.<br/><br/>The '''relevant interest''' in the building in relation to the qualifying expenditure is the interest to which the person incurring the qualifying expenditure was entitled when the qualifying expenditure was incurred.<br/><br/>There is a balancing adjustment if there is a balancing event within 7 years of the first use of the building after conversion or renovation. A '''balancing adjustment''' is a balancing charge or a balancing allowance. The main balancing events are the sale of the relevant interest and the grant of a long lease for a premium out of the relevant interest.

−	*fisheries and ~~aquaculture,~~	+	= '''How allowances are given and charges made''' =
−	*shipbuilding,	+
−	*the coal industry,	+
−	*the steel industry,	+
−	*synthetic fibres,	+
−	*the primary production of certain agricultural products, and	+
−	*the manufacture or marketing of products which imitate or substitute for milk and milk products.	+

−	<br/>~~Expenditure on acquiring land, extending a building or developing land next to a building does not qualify for BPRA.~~<br/>~~<br/>'''Allowances~~ and ~~charges'''<br/><br/>There~~ is ~~an '''initial allowance ''' equal to 100%~~ of ~~the qualifying expenditure~~.<br/><br/>If the ~~100% initial allowance is not claimed~~, or is ~~not claimed in full,~~ the person ~~that incurred~~ the ~~qualifying expenditure and holds~~ the ~~relevant interest in the qualifying~~ building ~~in relation to~~ the ~~qualifying expenditure may claim writing down allowances (WDAs) which are given at~~ an ~~annual rate~~ of ~~25% on the straight line basis to the person holding the relevant interest until all the qualifying expenditure has been allowed~~.<br/><br/>~~The '''relevant interest''' in~~ the ~~building in relation~~ to ~~the qualifying expenditure is the interest to which~~ the person ~~incurring the qualifying expenditure was entitled when the qualifying expenditure was incurred.<br/><br/>There~~ is ~~a balancing adjustment~~ if ~~there is~~ a ~~balancing event within 7 years of~~ the ~~first use~~ of the ~~building after conversion or renovation~~. ~~A '''balancing adjustment''' is~~ a balancing charge ~~or a balancing allowance. The main balancing events are the sale~~ of ~~the relevant interest and the grant of a long lease for a premium out of the relevant interest~~.~~<br/><br/>~~	+	<br/><br/>If the person entitled to BPRA has a trade, profession or vocation the allowance is treated as an expense and a balancing charge is treated as income of that trade, profession or vocation.<br/><br/>If the person entitled to BPRA has a property business, that is if the person is the landlord of the building, the allowance is treated as an expense and a balancing charge is treated as income of that property business.<br/><br/>Where the person entitled to BPRA does not have a trade, profession or vocation or a property business the person is treated as if he, she or it were carrying on a property business (a virtual property business) and the allowance is an expense of that virtual property business. This means that the allowance can be set against the person’s other income. Again, a balancing charge is treated as income of that virtual property business.

−	'''How allowances are given and charges made'''<br/><br/>If the person entitled to BPRA has a trade, profession or vocation the allowance is treated as an expense and a balancing charge is treated as income of that trade, profession or vocation.<br/><br/>If the person entitled to BPRA has a property business, that is if the person is the landlord of the building, the allowance is treated as an expense and a balancing charge is treated as income of that property business.<br/><br/>Where the person entitled to BPRA does not have a trade, profession or vocation or a property business the person is treated as if he, she or it were carrying on a property business (a virtual property business) and the allowance is an expense of that virtual property business. This means that the allowance can be set against the person’s other income. Again, a balancing charge is treated as income of that virtual property business.	+	= See also =

−	For full details go to:	+	For full details go to the [http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm HMRC website].

−	[~~http~~:~~//www.hmrc.gov.uk/manuals/camanual/CA45100.htm http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm~~]	+	[[Category:Taxation]]

	[[Category:Taxation]]		[[Category:Taxation]]

Martincantor: Created page with "'''Business Premises Renovation Allowance (BPRA)'''
'''Introduction'''

Business Premises Renovation Allowance ( '''BPRA''') was introduced by Finance Act 2005 and ..."

2012-10-01T17:27:46Z

Created page with "'''Business Premises Renovation Allowance (BPRA)''' '''Introduction''' Business Premises Renovation Allowance ( '''BPRA''') was introduced by Finance Act 2005 and ..."

New page

'''Business Premises Renovation Allowance (BPRA)'''

 '''Introduction''' Business Premises Renovation Allowance ( '''BPRA''') was introduced by Finance Act 2005 and came into force in 2007 and currently provides for relief on qualifying capital expenditure incurred at any time before April 2017.

BPRA is intended to give an incentive to bring derelict or unused properties back into use. Such expenditure must be incurred in a “disadvantaged area”

BPRA gives an initial allowance of 100% for expenditure on converting or renovating unused business premises.

 '''Disadvantaged areas''' At the time of writing (September 2012) The following are the areas that are disadvantaged areas for BPRA.

*Areas specified as development areas by the Assisted Areas Order 2007(SI 2007/107)
*Northern Ireland.

For the Assisted Areas Order 2007 go to [http://www.opsi.gov.uk/si/si2007/uksi_20070107_en.pdf http://www.opsi.gov.uk/si/si2007/uksi_20070107_en.pdf]

 '''Conditions''' A person must incur qualifying expenditure in order to claim BPRA. '''Qualifying expenditure''' is capital expenditure on

*converting a qualifying building into qualifying business premises, or
*renovating a qualifying building that is, or will be, qualifying business premises, or
*repairs to qualifying business premises.

Expenditure only qualifies for BPRA if the building is situated in a disadvantaged area and has been unused for a year immediately before the conversion or renovation begins. The last use must not have been as a dwelling. A '''qualifying building''' is a commercial building or structure situated in a disadvantaged area. 

'Qualifying Business Premises' means any building or structure, which must be used, or available and suitable for use, for the purpose of a trade, profession or vocation, or offices

The following are '''not''' qualifying business premises

Premises

*used or available for use as a dwelling
*the relevant interest in which is held by a person carrying on a relevant trade or
*used wholly or partly for the purposes of a relevant trade.

'''A relevant trade''' is a trade in the following sectors –

*fisheries and aquaculture,
*shipbuilding,
*the coal industry,
*the steel industry,
*synthetic fibres,
*the primary production of certain agricultural products, and
*the manufacture or marketing of products which imitate or substitute for milk and milk products.

 Expenditure on acquiring land, extending a building or developing land next to a building does not qualify for BPRA. '''Allowances and charges''' There is an '''initial allowance ''' equal to 100% of the qualifying expenditure. If the 100% initial allowance is not claimed, or is not claimed in full, the person that incurred the qualifying expenditure and holds the relevant interest in the qualifying building in relation to the qualifying expenditure may claim writing down allowances (WDAs) which are given at an annual rate of 25% on the straight line basis to the person holding the relevant interest until all the qualifying expenditure has been allowed. The '''relevant interest''' in the building in relation to the qualifying expenditure is the interest to which the person incurring the qualifying expenditure was entitled when the qualifying expenditure was incurred. There is a balancing adjustment if there is a balancing event within 7 years of the first use of the building after conversion or renovation. A '''balancing adjustment''' is a balancing charge or a balancing allowance. The main balancing events are the sale of the relevant interest and the grant of a long lease for a premium out of the relevant interest. 

'''How allowances are given and charges made''' If the person entitled to BPRA has a trade, profession or vocation the allowance is treated as an expense and a balancing charge is treated as income of that trade, profession or vocation. If the person entitled to BPRA has a property business, that is if the person is the landlord of the building, the allowance is treated as an expense and a balancing charge is treated as income of that property business. Where the person entitled to BPRA does not have a trade, profession or vocation or a property business the person is treated as if he, she or it were carrying on a property business (a virtual property business) and the allowance is an expense of that virtual property business. This means that the allowance can be set against the person’s other income. Again, a balancing charge is treated as income of that virtual property business.

For full details go to:

[http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm http://www.hmrc.gov.uk/manuals/camanual/CA45100.htm]

[[Category:Taxation]]

Business premises renovation allowance - Revision history

Editor at 17:58, 12 January 2024

Designing Buildings at 08:41, 8 November 2020

Designing Buildings at 08:40, 8 November 2020

Designing Buildings at 15:03, 24 August 2015

Designing Buildings: moved Business Premises Renovation Allowance to Business premises renovation allowance

Designing Buildings at 06:59, 10 June 2013

Designing Buildings at 06:59, 10 June 2013

2.25.36.246 at 05:45, 2 October 2012

2.25.36.246 at 05:39, 2 October 2012

Martincantor: Created page with "'''Business Premises Renovation Allowance (BPRA)''' '''Introduction'''Business Premises Renovation Allowance ( '''BPRA''') was introduced by Finance Act 2005 and ..."

Martincantor: Created page with "'''Business Premises Renovation Allowance (BPRA)'''
'''Introduction'''

Business Premises Renovation Allowance ( '''BPRA''') was introduced by Finance Act 2005 and ..."