As a landlord, one of the biggest expenses you will face is business rates. These are taxes levied on non-domestic properties, including rental properties. However, there are several avenues available for landlord business rates relief that can help reduce the financial burden on your rental property business.
Business rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). The rates are then set by the government and local authorities, so they can vary depending on where your property is located. This means that as a landlord, you may have to pay different rates for each of your rental properties.
One of the most common forms of landlord business rates relief is small business rate relief (SBRR). This is available to landlords who have a rateable value below a certain threshold. In England, the threshold is currently set at £15,000, meaning that if your property has a rateable value below this amount, you may be eligible for SBRR. This relief can provide a discount of up to 100% on your business rates, meaning that you could pay nothing at all.
There is also rural rate relief available for landlords with properties in rural areas. This relief is aimed at businesses in rural locations, where the cost of providing services is higher than in urban areas. If your property is in a rural location, you may be eligible for a discount on your business rates of up to 100%.
Another form of landlord business rates relief is charitable rate relief. This is available to landlords who lease their property to a registered charity. If your property is occupied by a charity, you may be eligible for an 80% discount on your business rates. This relief can also be applied to properties used for charitable purposes, even if they are not directly leased to a registered charity.
In addition to these forms of relief, there are a number of other ways in which landlords can reduce their business rates liability. For example, if your property is empty, you may be eligible for empty property relief. This can provide a discount of up to 100% on your business rates for a set period of time, depending on the local authority.
There is also a hardship relief scheme available for landlords who are experiencing financial difficulties. If you are struggling to pay your business rates, you may be able to apply for hardship relief. This can provide a discount on your rates or allow you to pay in instalments, depending on your circumstances.
It is important to note that business rates relief is not automatic, and you will need to apply for it through your local authority. The process can be complex, so it is advisable to seek advice from a professional, such as a chartered surveyor or a tax specialist, to ensure that you are getting the relief you are entitled to.
In conclusion, business rates are a significant expense for landlords, but there are several avenues available for relief. Whether you are eligible for small business rate relief, rural rate relief, charitable rate relief, or another form of relief, it is worth exploring your options to reduce your business rates liability. By taking advantage of these relief schemes, you can help to reduce the financial burden on your rental property business and ensure that you are paying the correct amount of business rates.