As a landlord, you may already be aware of the various costs and responsibilities that come with owning a property. One of the major expenses that landlords must take into account is business rates. Business rates are a tax that property owners are required to pay to the local government. These rates are based on the rateable value of the property and are used to fund local services such as roads, schools, and healthcare.
For landlords who own commercial properties or multiple residential properties, business rates can be a significant financial burden. However, there are various relief schemes and exemptions available to help alleviate this burden. In this article, we will explore the different types of landlord business rates relief and how you can take advantage of them.
One of the most common forms of landlord business rates relief is Small Business Rate Relief (SBRR). SBRR is available to businesses and property owners who occupy a property with a rateable value of less than a certain threshold. The amount of relief available varies depending on the rateable value of the property. In some cases, properties with a rateable value of less than £12,000 may qualify for 100% relief, while properties with a rateable value between £12,001 and £15,000 may qualify for tapered relief.
To qualify for SBRR as a landlord, you must meet certain criteria, such as using the property for business purposes or letting it to a qualifying small business. If you meet the criteria, you can apply for SBRR through your local council and start saving money on your business rates.
Another form of landlord business rates relief is Empty Property Relief. If you own a commercial property that is unoccupied for a certain period of time, you may be eligible for Empty Property Relief. This relief scheme allows property owners to claim a discount on their business rates for properties that are empty and undergoing renovation or refurbishment.
To qualify for Empty Property Relief, you must meet certain criteria, such as notifying the local council of the property’s vacancy and actively seeking to let or sell the property. The amount of relief available varies depending on the type of property and the length of time it has been vacant.
In addition to SBRR and Empty Property Relief, there are other relief schemes available to landlords, such as Charitable Relief and Rural Rate Relief. Charitable Relief is available to properties that are occupied by registered charities and used for charitable purposes. This relief scheme allows qualifying charities to claim 80% relief on their business rates.
Rural Rate Relief is available to properties in designated rural areas that are used for certain types of businesses, such as agriculture or tourism. This relief scheme allows qualifying properties to claim up to 100% relief on their business rates.
Overall, there are a variety of relief schemes and exemptions available to help landlords reduce their business rates and save money. By taking advantage of these relief schemes, landlords can alleviate the financial burden of business rates and make their properties more financially viable.
In conclusion, understanding landlord business rates relief is essential for property owners who want to save money and reduce their expenses. By familiarizing yourself with the different relief schemes available and meeting the qualifying criteria, you can take advantage of these schemes and alleviate the financial burden of business rates. Whether you qualify for SBRR, Empty Property Relief, or other relief schemes, it is important to explore your options and make the most of the opportunities available to you as a landlord.