Finance Act 2014 has clarified the scope of Business Premises Renovation Allowance (BPRA).
BPRA is available to businesses that incur capital expenditure on bringing back into business use qualifying business premises in disadvantaged areas. Capital allowances of 100 per cent may be claimed on qualifying expenditure.
The new legislation applies from 1 April 2014 (6 April 2014 for unincorporated businesses) and seeks to ensure that only expenditure needed to bring the premises back into business use qualifies for BPRA.
BPRA will only be available for the actual costs of construction and building work, and for certain specified activities such as architectural and surveying services.
The legislation also provides that additional associated activities (such as project management) qualify for relief, limited to five per cent of the actual costs.
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