Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Shut the barn door

28 October 2014 / Alun Oliver
Issue: 4475 / Categories: Comment & Analysis , Business , Capital allowances
oliver_0

Business premises renovation allowance for conversions to holiday lets

Business premises renovation allowance (BPRA) is a very attractive incentive giving 100% relief on expenditure to return a commercial building to use after it has been empty for a year.

There are several restrictions notably that it must be in an assisted area. However if these are met can the relief be used to renovate a derelict barn into a property used for furnished holiday lettings (FHLs)? The answer is not obvious.

Views against

My main concern is the prohibition of a valid BPRA claim on properties in use (or previously used) for “farming” under the EU state aid restrictions.

Hence the first hurdle would be to ensure the prior use is compliant with the BPRA rules – which state that these premises are not “qualifying business premises”:

  • if they are used or available for use as a dwelling;
  • ...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon