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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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there, I want to know if I am eligible premises

Resolved Question:

Hi there,
I want to know if I am eligible for business premises renovation allowance. But I have not used this site before and was not sure how it worked.
Thanks, SH
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

There is alot of information on BPRA here. If you take a look at that and are still unsure after whether your property qualifies having read the notes, let me know and give me some information about the property and your situation.

I hope this helps but let me know if you have any further questions.

PS I will be away from my desk for about 30 minutes but I will be back to answer any follow up questions you may have.

Customer: replied 2 years ago.

Hi there,

I have read this and a lot more. I have been not he phone to various helplines within HMRC but no one can answer my specific query:

I am renovating a building in Northern Ireland, the building has been vacant for more than 1 year but I am only leasing the property from the owner. I have to confirm the duration of the lease and I have been led to believe that it has to be a long lease to qualify for this allowance. But what signifies a long lease? The information on HMRC would suggest that '7' is a significant number in terms of clawback but the only examples of leasee's given refer to 49 years and 99 years so is this essentially the owner with a leasehold property??

Many thanks

Expert:  TonyTax replied 2 years ago.
Leave this with me and I'll get back to you.
Expert:  TonyTax replied 2 years ago.

Hi again.

The HMRC manual on BPRA starts here.

A long lease for tax purposes is one that is for a period of 50 years or more (HS292). I cannot find anything that suggests that a lease should be a long lease in order to qualify for BPRA. Clearly, the longer the lease is, the more likely that you will write off all your expenditure against income.

A relevant interest in the property is a requirement and that can be a freehold or a lease or a licence to occupy as you will see at point 5 under the heading "Other conditions" here. The third example (Tracey) mentions a lease but no period. The last example (Dylan) also mentions that if there is an agreement for a lease but the expenditure is incurred before the lease is put in place, then BPRA is available to the person who incurred the expenditure (Dylan).

The seven year period is relevant where expenditure was incurred before 1 April 2014 by a company and before 6 April 2014 by an individual. For expenditure incurred on or after 1 April 2014 by a company and on or after 6 April 2014 by an individual, the period is 5 years as you can read here in the final paragraph. Relief given under the BPRA rules can be clawed back if an event as described here occurs.

Customer: replied 2 years ago.
The information you have provided would imply that in my situation I would indeed be eligible for this allowance but who would provide a definitive answer as HMRC advised it was nothing to do with them and likely to be a council issue. Does that mean this is open to interpretation depending on where you live?
Expert:  TonyTax replied 2 years ago.
What do you mean by "depending where you live"?
Customer: replied 2 years ago.

i.e Could Northern Ireland have a different interpretation of this allowance based on funding etc?

Expert:  TonyTax replied 2 years ago.
The whole of Northern Ireland is covered according to the notes here and here which you've probably already seen. There won't be a different interpretation of the rules as NI is still part of the UK and the UK tax system. Since the early years of the peace process, several tax relief schemes have been set up to encourage investment in NI and BPRA is one of the more recent.

BPRA is a tax relief given by the UK government through HMRC. The local councils in NI won't dictate the areas that will qualify and I cannot see how your funding source will disqualify you.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15884
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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