As a landlord, one of the expenses you have to factor in when renting out your property is business rates Business rates are taxes that commercial property owners must pay to their local council These rates can be a significant cost for landlords, especially for those who own multiple properties However, there are ways for landlords to get relief on their business rates, which can help reduce this financial burden.
One of the most common forms of business rates relief for landlords is Small Business Rate Relief (SBRR) SBRR is a government scheme that provides relief to businesses with properties that have a rateable value below a certain threshold In England, for example, properties with a rateable value of less than £15,000 are eligible for SBRR, with the relief tapering off for properties with rateable values between £15,000 and £51,000.
Landlords who qualify for SBRR can receive a discount on their business rates bill In some cases, they may even be eligible for 100% relief, meaning they don’t have to pay any business rates at all This can result in significant savings for landlords, especially if they have multiple properties that qualify for SBRR.
Another form of business rates relief available to landlords is Empty Property Relief This relief is for properties that are unoccupied and can provide landlords with a discount on their business rates bill The amount of relief varies depending on how long the property has been empty, with longer periods of vacancy resulting in higher levels of relief.
There is also a form of relief available to landlords who choose to convert their property for charitable use landlord business rates relief. If a landlord decides to lease their property to a charity, they may be eligible for Charitable Rate Relief This relief can provide landlords with significant savings on their business rates bill, as properties used for charitable purposes are usually eligible for 80% relief.
In addition to these forms of relief, there are also specific schemes available to landlords who own certain types of properties For example, landlords who own listed buildings may be eligible for Listed Building Relief, which provides discounts on business rates bills for properties that are designated as being of historical or architectural significance.
It’s important for landlords to be aware of the various forms of business rates relief available to them and to take advantage of these opportunities wherever possible By reducing the amount of business rates they have to pay, landlords can increase their profit margins and make their properties more competitive in the rental market.
However, it’s also crucial for landlords to be aware of the eligibility criteria for each form of relief and to ensure they are compliant with the rules and regulations set out by their local council Failure to meet these requirements could result in penalties or fines, so it’s essential for landlords to do their due diligence and seek guidance from a professional if needed.
In conclusion, business rates relief can be a valuable resource for landlords looking to reduce their overhead costs and increase their profit margins By taking advantage of schemes like SBRR, Empty Property Relief, and Charitable Rate Relief, landlords can save money on their business rates bills and make their properties more financially viable It’s essential for landlords to be aware of the various forms of relief available to them and to ensure they meet the eligibility criteria set out by their local council By doing so, landlords can make their businesses more successful and profitable in the long run.