As a landlord, managing a property portfolio can come with various costs and expenses. One of the recurring expenses that landlords need to be mindful of is business rates. Business rates are taxes that are paid on non-domestic properties, including commercial properties and some residential properties that are classified as such by the local authorities.
However, there are instances where landlords may be eligible for business rates relief, providing some financial relief. This relief can make a significant difference to landlords, especially those who own multiple properties. In this article, we’ll explore the benefits of landlord business rates relief and how landlords can take advantage of it.
Business rates relief is a scheme offered by local authorities to reduce the amount of business rates that a property owner is required to pay. The relief is available to landlords in certain circumstances, and the criteria for eligibility can vary depending on the local authority.
One common form of business rates relief for landlords is the Small Business Rate Relief (SBRR). This relief is available to landlords who own properties with a rateable value below a certain threshold. The exact threshold can vary depending on the location of the property, but properties with a rateable value of less than £12,000 are generally eligible for SBRR.
Another form of business rates relief that landlords may be eligible for is the Retail Relief scheme. This relief is specifically aimed at landlords who own properties that are used for retail purposes. Retail Relief provides a discount on business rates for qualifying properties, helping to support the retail sector and encourage landlords to invest in retail properties.
Landlords who own empty properties may also be eligible for business rates relief. Empty Property Relief provides a full exemption from business rates for a limited period of time, usually the first three months that a property is empty. After this initial period, landlords may still be eligible for a discount of up to 50% on the business rates for the property.
In addition to these specific schemes, there are other forms of business rates relief that landlords can explore. For example, properties that are used for charitable purposes are eligible for Charitable Rate Relief, which provides an 80% discount on business rates. Properties that are used for certain types of industrial purposes may also be eligible for Industrial Relief, offering a discount on business rates for qualifying properties.
Taking advantage of business rates relief can provide landlords with substantial financial savings. By reducing the amount of business rates that need to be paid, landlords can improve the profitability of their property investments and reinvest the savings into their portfolio. This can help landlords to grow their property portfolio, attract tenants, and ultimately increase their rental income.
To apply for business rates relief, landlords will need to contact their local authority and provide the necessary information and documentation. Each local authority may have its own application process and criteria for eligibility, so landlords should make sure to familiarise themselves with the requirements before applying.
It’s also worth noting that business rates relief is not automatic and landlords will need to actively apply for the relief that they are eligible for. By taking the time to explore the different schemes available and submit the relevant applications, landlords can unlock valuable savings on their business rates bills.
In conclusion, business rates relief can be a valuable resource for landlords looking to reduce their property expenses and improve their financial sustainability. Whether you own commercial properties, retail properties, or empty properties, there are various forms of relief that you may be eligible for. By taking the time to research the options available and apply for the relief that you qualify for, landlords can better manage their property portfolios and maximise their returns.
So if you’re a landlord looking to save on business rates, be sure to explore the business rates relief schemes available in your area. With the potential for significant savings, business rates relief can be a valuable tool for landlords looking to optimise their property investments.