Just a few points on yesterday’s Budget:
Enterprise Zones
Enhanced Capital Allowance (ECA) claims in Enterprise Zones are set to continue for eight more years following the introduction of the latest Enterprise Zones.
These new Enterprise Zones will be located in Coleraine (NI), Cornwall, Dudley, Loughborough, Leicester and Port Talbot (Wales). Sheffield’s Enterprise Zone will also be extended.
Details on where Enterprise Zones are located can be found on the Enterprise Zone website here. There is a very useful interactive mapwhich tells you where ECA’s can be used.
Business Premises Renovation Allowance (BPRA)
It was also confirmed that BPRA will expire on 31st March 2017 for corporation tax and 5th April 2017 for income tax as legislated in Finance Act 2012.
BPRA gives an initial allowance of 100% on expenditure to bring derelict or unused properties back into use in disadvantaged areas. Qualifying disadvantaged areas can be checked here.
Whilst good news for Enterprise Zones, it’s unfortunate that the BPRA was not extended.
In order to make the most of the BPRA, we would recommend that all construction expenditure is incurred before March/April 2017.
SRA can help with BPRA by clarifying eligible location and premises usage, reviewing renovation works and identifying qualifying expenditure.
Please feel free to contact us with any queries you may have.