The Business Premises Renovation Allowances (Amendment) Regulations 2012

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Business Premises Renovation Allowances Regulations 2007 (S.I. 2007/945) (“the principal Regulations”).

Regulation 1 deals with citation and commencement; and regulation 2 introduces the amendments.

Regulation 3 inserts new regulation 2A into the principal Regulations. New regulation 2A prescribes an expiry date for allowances under Part 3A of the Capital Allowances Act 2001 (c. 2: “CAA”).

Regulation 4 amends the definition of “relevant trade” in regulation 4 of the principal Regulations by referring to trades in sectors referred to in Article 1(3) of Commission Regulation (EC) No 800/2008 (the “GBER”). The amended definition of “relevant trade” also includes those trades carried on by undertakings which either are the subject of an outstanding recovery order made by virtue of Article 108(2) of the Treaty on the Functioning of the European Union or which would be regarded as a firm in difficulty for the purposes of the Community Guidelines on State aid for Rescuing and Restructuring Firms in Difficulty.

Regulation 5 inserts new regulation 5 into the principal Regulations. Paragraph (1) of new regulation 5 provides that expenditure is not qualifying expenditure if it is on a qualifying building which is not in a disadvantaged area on the date the expenditure is incurred. Paragraphs (2) to (3) of new regulation 5 make provision for a cap of 20 million euros on qualifying expenditure. This cap applies to the current expenditure and also to the total of the current expenditure and any expenditure treated as related to the current expenditure under the State aid regulations contained in the GBER.

A Tax Information and Impact Note covering this Instrument will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.