Q&A: Business premises renovation allowances

27 January 2025 / Paul Smith

Issue: 4970 / Categories: Comment & Analysis

Paul Smith discusses business premises renovation allowances and what we should expect next.

Many readers will be familiar with business premises renovation allowances (BPRA). With a second recent case heard at the First-tier Tribunal (FTT) and potentially more to follow BPRA rulings could have an impact on decisions in future capital allowances cases notwithstanding that the BPRA legislation was repealed in 2017.

BPRA was a temporary relief introduced to incentivise businesses to bring derelict or unused properties back into commercial use. BPRA provided an initial allowance of 100% if qualifying conditions were met. These included that the relevant expenditure had to be incurred on the conversion or renovation of certain business premises.

Hot on the heels of the litigation relating to the London Luton Hotel BPRA Property Fund comes the recently published decision in FRF (South Wales) Ltd (TC9386). This concerned building works carried out by the appellant on a disused retail warehouse at a cost of approximately £1.675m....

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