Monday 13 – Wednesday 15 March 2023
This is a second appeal. By appellant’s notice filed on 15 September 2021, the taxpayer applicant appeals the Upper Tribunal’s decision of 17 June 2021, whereby they held that it was necessary in determining the claim for business premises renovation allowance (‘BPRA’) to analyse the constituent elements of the expenditure incurred by the taxpayer on or in connection with the conversion, renovation and repair of a qualifying building and that the Interest Amount and Legal Fees parts of the claim for BPRA did not qualify.
The Tribunal (Tax and Chancery Chamber) heard appeals from the taxpayer, London Luton BPRA Property Fund LLP, and HMRC against the decision of the First tier Tribunal in respect to which elements of expenditure qualified for BPRA. The LLP claimed £12,478,201 of BPRA when it converted a former flight training centre near London Luton Airport into a Ramada Encore hotel. HMRC opened an enquiry and issued a closure notice which reduced the BPRA claim by £5,255, 761. The FTT allowed the LLP’s appeal in part.