As a landlord, one of the many expenses you have to factor in when running a property business is paying business rates. These rates are charged on most non-domestic properties, including rental properties. However, there are some relief schemes available for landlords to help reduce the financial burden of business rates. In this article, we will explore what landlord business rates relief is and how you can take advantage of it to save money.
Business rates are a tax on non-domestic properties that are used for commercial purposes, including rental properties. Landlords are responsible for paying business rates on their rental properties, and the amount payable is calculated based on the rateable value of the property. The rateable value of a property is determined by the Valuation Office Agency (VOA) and is used to calculate how much business rates you will need to pay.
For many landlords, business rates can be a significant expense that eats into their rental profits. However, there are relief schemes available that can help to reduce this financial burden. One such relief scheme is small business rate relief, which is aimed at supporting small businesses, including small landlord businesses.
Small business rate relief is available to landlords who only occupy one property and have a rateable value of less than a certain threshold, which varies depending on the region. If your property meets the criteria for small business rate relief, you may be eligible for a discount on your business rates, or you may not have to pay any business rates at all.
Another relief scheme available to landlords is charitable rate relief. If you let your property to a registered charity, you may be entitled to charitable rate relief, which could result in a significant reduction in your business rates. This relief is intended to support charities and encourage landlords to let their properties to charitable organizations by reducing the financial burden of business rates.
Additionally, landlords who own empty properties may also be eligible for business rates relief. Empty property relief allows landlords to claim a temporary exemption from paying business rates on properties that are unoccupied. This relief can provide landlords with some financial breathing space while they look for new tenants or carry out renovations on their property.
It’s important for landlords to be aware of the relief schemes available to them and to take advantage of them where possible. By reducing your business rates, you can increase your rental profits and improve the overall financial health of your property business.
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 business. They will assess your eligibility for relief and inform you of any discounts or exemptions that you may be entitled to.
In conclusion, landlord business rates relief is a valuable scheme that can help landlords save money on their business rates and increase their rental profits. By taking advantage of the relief schemes available, landlords can reduce their financial burden and improve the overall profitability of their property business. If you are a landlord, make sure to explore the options for business rates relief that are available to you and take steps to apply for relief where possible.