A tax break for businesses renovating empty property that was set to expire on 5 April has been extended for five years, says Tax Tips & Advice. The Business Premises Renovation Allowance (BPRA) is for businesses renovating empty property in disadvantaged areas, then using them as business premises.
The areas are specified by the Assisted Areas Order (see here for more). Businesses can "claim a 100% deduction from profits" for the costs, rather than wait for tax relief via "the capital allowances or the Capital Gains Tax regimes". So if you spend £30,000 on renovation and pay corporation tax at 20%, the saving is £6,000. Buildings must have been empty for at least a year.
Spending cannot relate to buying land, plant or machinery, apart from integral features. Nor can it relate to extending a building or developing neighbouring land. The building must not have been the subject of other state grants or subsidies.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
You don't have to be a business owner to benefit. Several renovation schemes run by investment syndicates use the BPRA. Most financial advisers should be able to recommend a suitable option.
-
Which UK region has the most in savings? Average savings by areaThe amount people have in their savings differs from region to region in the UK. How does your nest egg compare to those living nearby?
-
Doug and Mary Perkins: Specsavers’ clear-sighted foundersHelped by the deregulation of the sector in the 1980s and brilliant advertising, Mary Perkins and her husband Doug have taken Specsavers to the top of the optometry market
