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Schemes involving business premises renovation allowance (BPRA) have been reported to HMRC through the disclosure of tax avoidance schemes regime and included on the department’s Spotlight service that provides details of abusive arrangements.
The BPRA is intended to support the regeneration of deprived regions of the UK by allowing business investors to claim a tax allowance for 100% of the amount they invest in converting or renovating empty premises.
Schemes involving business premises renovation allowance (BPRA) have been reported to HMRC through the disclosure of tax avoidance schemes regime and included on the department’s Spotlight service that provides details of abusive arrangements.
The BPRA is intended to support the regeneration of deprived regions of the UK by allowing business investors to claim a tax allowance for 100% of the amount they invest in converting or renovating empty premises.
The Revenue believes the schemes disclosed are “seriously flawed”. They typically include one or more of the following features:
- claims for costs other than the actual direct capital costs of renovating or converting an empty building in a deprived area, which qualify under the BPRA rules;
- limited recourse, often circular loans; and
- expenditure contractually incurred when the building is occupied and in use, or only recently vacated, or when some of the agreed works may not start for several years, if at all.
The government wishes to preserve the BPRA without making the rules more complex and difficult to apply. HMRC are conducting a technical review with the intention of making the rules simpler, more certain and less susceptible to manipulation.
Comments are should be sent by email no later than 30 September.
