Business Premises Renovation Allowance
(asked on 9th February 2016) - View Source
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what total value of tax relief has been granted under the Business Premises Renovation Allowance scheme in each of the last six years.
HM Revenue and Customs (HMRC) does not collate information at the aggregate level requested.
The Business Premises Renovation Allowance (BPRA) is an incentive designed to bring derelict or unused business properties back into use, by providing 100 percent relief for renovation of vacant properties in disadvantaged areas.
In 2012 HMRC noticed a spike in the cost of BPRA. Investigations revealed that this increase was due to marketed avoidance. HMRC challenges avoidance wherever they see it. Where taxpayers choose to press their case to litigation, HMRC wins around 80% of cases heard in court.
In addition, legislation was introduced in Finance Act 2014 to prevent future avoidance. The NAO complimented the speed with which HMRC addressed this avoidance and tightened the legislation.
The costs of BPRA are published annually in HMRC’s Estimated cost of minor tax allowances and structural reliefs, which can be viewed using the following link:
Budget 2011 announced that Business Premises Renovation Allowance would be extended to 31 March 2017 for Corporation Tax and 5 April 2017 for Income Tax.