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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;
- ...
