As a landlord, one of the major expenses you face is business rates, which are taxes levied on non-residential properties in the UK. These rates can have a significant impact on your bottom line, especially if you own multiple properties. However, there are ways to get some relief from these rates through various schemes and exemptions. In this article, we will delve into the topic of landlord business rates relief and provide you with a comprehensive guide on how to minimize this financial burden.
Business rates relief is essentially a discount or exemption that can be applied to your business rates bill. There are several different types of relief available to landlords, depending on the nature of your property and your individual circumstances. The most common types of business rates relief for landlords include small business rates relief, rural rate relief, and empty property relief.
Small business rates relief is a scheme that provides discounts to businesses with a rateable value below a certain threshold. If you own a property with a rateable value of less than £15,000, you may be eligible for this relief. The amount of relief you receive will depend on the rateable value of your property, with the maximum discount available to properties with a rateable value of £12,000 or less. This relief can result in significant savings for landlords of small properties, so it is important to check if you qualify for this scheme.
Rural rate relief is another form of business rates relief that is specifically designed to help businesses in rural areas. If your property is located in a rural area with a population of less than 3,000, you may be eligible for this relief. The amount of relief you receive will depend on the rateable value of your property, but it can provide a discount of up to 50% on your business rates bill. This scheme is aimed at supporting businesses in rural communities and can be a valuable source of savings for landlords with properties in these areas.
Empty property relief is a form of relief that applies to properties that are unoccupied. If you own a property that is empty for a certain period of time, you may be eligible for a discount on your business rates bill. The amount of relief you receive will depend on how long the property has been empty, with a maximum discount of 100% available for properties that have been empty for more than three months. This relief can provide a welcome break for landlords who are struggling to find tenants for their properties and can help to ease the financial burden of owning empty real estate.
In addition to these main forms of business rates relief, there are also other schemes and exemptions available to landlords. For example, charitable relief is available to landlords who rent their properties to registered charities, while transitional relief can help to ease the impact of large increases in business rates bills following a revaluation of your property. It is important to explore all of the options available to you as a landlord to ensure that you are maximizing your business rates relief and minimizing your costs.
To apply for business rates relief as a landlord, you will need to contact your local council and provide them with the necessary information about your property and your circumstances. Each council has its own process for applying for relief, so it is important to check with them to find out what you need to do to apply. In some cases, you may need to provide evidence of your eligibility for relief, such as proof of your property’s rateable value or evidence that it is located in a rural area. It is important to keep detailed records of your property and its occupancy status to ensure that you can provide this information when needed.
In conclusion, business rates relief is an important tool for landlords to minimize the financial burden of owning non-residential properties. By taking advantage of the various schemes and exemptions available, you can reduce your business rates bill and save money on your property expenses. If you are a landlord, it is essential to explore all of the options available to you and apply for relief where possible to ensure that you are getting the best possible deal. Contact your local council today to find out more about business rates relief and how you can benefit as a landlord.