As a landlord, managing property expenses can be a daunting task. From maintenance costs to insurance premiums, there are numerous expenses to consider in order to maximize profits. One significant expense that landlords often overlook is business rates. These rates are charged on most non-domestic properties, including rental properties, and can significantly impact a landlord’s bottom line. However, there are various relief schemes and exemptions available to help reduce this financial burden.
One important relief scheme available to landlords is the Small Business Rate Relief (SBRR). This relief is aimed at small businesses, including landlords who own properties with a rateable value below a certain threshold. In England, properties with a rateable value of less than £15,000 are eligible for 100% relief, while properties with a rateable value between £15,000 and £51,000 are eligible for tapered relief. This scheme can result in substantial savings for landlords, particularly those who own multiple small properties.
Another relief scheme that landlords can benefit from is the Empty Property Rate Relief. When a property becomes vacant, landlords are still liable to pay business rates on the empty property. However, landlords can apply for a temporary exemption from paying business rates on the property for a certain period, typically three or six months depending on the property’s type and location. This can provide landlords with some financial relief while they seek new tenants or carry out renovations on the property.
Furthermore, landlords who own properties in certain designated areas may be eligible for Business Rates Relief. Local councils have the discretion to provide relief to businesses operating in specific areas that are deemed to be in need of support. This relief can take the form of a discount on business rates or a temporary exemption, depending on the council’s criteria. Landlords should check with their local council to see if their properties are eligible for this relief.
In addition to these relief schemes, landlords can also take advantage of various exemptions and discounts to reduce their business rates liability. For example, landlords who own properties that are used for charitable purposes or are agricultural land may be eligible for relief from business rates. Similarly, landlords who own properties that are listed buildings or are used for certain types of industrial purposes may be entitled to discounts on their business rates. It is essential for landlords to familiarize themselves with the various exemptions and discounts available to ensure they are not paying more than necessary.
It is worth noting that the COVID-19 pandemic has had a significant impact on the property market, with many landlords experiencing financial difficulties due to rent arrears and reduced rental income. In response to these challenges, the government has introduced various support measures to help landlords weather the storm. One such measure is the Expanded Retail Discount, which provides a 100% relief on business rates for retail, hospitality, and leisure properties for the 2021-2022 financial year. This relief has been extended to include more properties affected by the pandemic, such as gyms, cinemas, and live music venues.
Overall, landlord business rates relief plays a crucial role in helping landlords reduce their financial burden and maximize their savings. By taking advantage of the various relief schemes, exemptions, and discounts available, landlords can significantly reduce their business rates liability and increase their profits. It is essential for landlords to stay informed about the relief options available to them and to regularly review their business rates to ensure they are not overpaying. Ultimately, proactive management of business rates can make a significant difference in a landlord’s overall financial success.