The tax benefits of renovating commercial property
Demand for commercial property in the UK is at the highest level in years and this has inevitably placed a greater strain on development and supply.
Due to this pressure, the government has introduced a number of schemes aimed at bringing unused properties back to the market, with added tax incentives for investors.
One such scheme is the Business Premises Renovation Allowance, which lets investors claim 100% tax allowance when converting or renovating derelict business properties in disadvantaged areas.
The list of eligible disadvantaged areas can be found here and contains towns and cities across the UK, meaning businesses and investors can benefit wherever they are in the UK.
There are further criteria that need to be met for tax allowance to apply, including the type of property, the type of work that needs to be undertaken, previous use and the intended trade of the property. You can view all the terms here.
The property must also have been unused for at least a year and must be used as a location for a trade profession or vocation.
The BPRA program started back in April 2007 and has undergone a number of changes and extensions. Relief for Corporation Tax ends in March 2017 and relief for income tax in April, meaning there’s just two years left to benefit from these allowances.
If you are looking to invest in properties that qualify for tax allowance, NovaLoca has available properties in all of the listed disadvantaged areas in the UK. Search them here!