As a landlord, navigating the world of business rates can be overwhelming and confusing. Business rates are taxes that are charged on most non-domestic properties, including rental properties. These rates can eat into your rental income and can sometimes be a significant expense for landlords. However, there is good news for landlords who are looking to reduce their business rates burden – business rates relief.
Business rates relief is a scheme in the UK that provides financial assistance to businesses, including landlords, who are struggling to pay their business rates. There are various types of business rates relief available, each with its own eligibility criteria and conditions. In this article, we will explore everything you need to know about landlord business rates relief.
One of the most common types of business rates relief available to landlords is Small Business Rate Relief (SBRR). SBRR is aimed at small businesses, including landlords who operate small rental properties. To qualify for SBRR, your property must have a rateable value below a certain threshold set by the government. If you meet the eligibility criteria, you could be entitled to a significant reduction in your business rates bill or even pay no business rates at all.
Another form of business rates relief available to landlords is Empty Property Relief. This relief is for landlords who own non-domestic properties that are unoccupied. Usually, non-domestic properties are still liable for business rates even when they are vacant. However, under Empty Property Relief, landlords can receive a temporary exemption from paying business rates for a specified period. This can be a huge relief for landlords who are struggling to find tenants for their properties.
Charitable Rate Relief is another form of business rates relief that is available to landlords who rent out properties to registered charities. If you let your property to a charity, you could be eligible for a 80% discount on your business rates bill. This can be a great incentive for landlords to provide affordable space for charities to operate in.
Additionally, Rural Rate Relief is available to landlords who own non-domestic properties in rural areas. This relief is aimed at supporting businesses in rural communities where the rateable value of properties is generally lower than in urban areas. If you are a landlord with properties in a rural location, you could be entitled to a reduction in your business rates bill under this scheme.
It is important to note that business rates relief is not automatically applied to your property – you will need to apply for it yourself. To apply for business rates relief, you will need to contact your local council and provide them with the necessary information and documentation to support your application. Each type of business rates relief has its own application process and requirements, so it is important to familiarize yourself with the details before applying.
In some cases, your local council may also offer discretionary rate relief to landlords who do not qualify for any of the standard relief schemes. Discretionary rate relief is awarded on a case-by-case basis and is usually provided to businesses that are deemed to have exceptional circumstances that warrant additional financial support.
In conclusion, landlord business rates relief can be a valuable tool for landlords looking to reduce their business rates burden and save money on their property expenses. By taking advantage of the various relief schemes available, landlords can potentially save hundreds or even thousands of pounds each year. If you are a landlord struggling to pay your business rates, it is worth exploring the different relief options available to you and applying for relief where you qualify. Remember, every penny saved on business rates is a penny earned in your pocket.