As a landlord, you are running a business by renting out your properties to tenants. Just like any other business, you are required to pay business rates on your rental properties. Business rates are taxes that are levied on non-domestic properties, including shops, offices, and rental properties. However, many landlords are unaware of the various relief schemes and exemptions that are available to help reduce the burden of business rates on their investment properties.
One key form of relief available to landlords is the Small Business Rates Relief (SBRR). This relief scheme is designed to support small businesses with rateable values below a certain threshold. In England, properties with a rateable value of under £15,000 may be eligible for SBRR, which can significantly reduce the amount of business rates that landlords are required to pay. Landlords who own multiple properties may also be able to claim SBRR for each eligible property, further reducing their overall business rates liability.
Another form of relief that may be available to landlords is the Empty Property Relief. This relief is designed to provide temporary relief from business rates for properties that are empty and not generating rental income. In England, empty commercial properties are generally exempt from business rates for the first three months that they are empty. After this initial period, the rateable value of the property may be reduced by 50%, providing further relief for landlords with vacant properties.
In addition to these relief schemes, landlords may also be able to apply for hardship relief if they are experiencing financial difficulties that make it difficult to pay their business rates. Hardship relief is typically granted on a case-by-case basis and may provide temporary relief or a reduction in business rates for landlords who are struggling financially. Landlords who believe they may be eligible for hardship relief should contact their local council to discuss their specific circumstances and make an application for relief.
It is important for landlords to be aware of the relief schemes and exemptions that are available to them, as paying business rates can be a significant expense for property owners. By taking advantage of these relief schemes, landlords can reduce their business rates liability, freeing up funds to invest in their properties and grow their rental business.
In addition to relief on business rates, landlords may also be eligible for other forms of financial support to help them maintain and improve their rental properties. For example, landlords may be able to apply for grants or loans to carry out essential repairs or make energy-efficient improvements to their properties. These financial support programs can help landlords to maintain their properties to a high standard, attract tenants, and increase the value of their investment.
Overall, landlords should take advantage of the relief schemes and exemptions that are available to them to reduce their business rates liability and access other forms of financial support that may be available. By staying informed about the various relief schemes and support programs, landlords can better manage their finances, address any financial difficulties, and continue to grow and improve their rental property business.
In conclusion, landlord business rates relief can provide valuable support and financial assistance to property owners who are struggling to pay their business rates. By taking advantage of relief schemes such as SBRR, Empty Property Relief, and hardship relief, landlords can reduce their business rates liability and access other forms of financial support to help maintain and improve their rental properties. It is important for landlords to stay informed about the relief schemes that are available to them and to make any necessary applications for relief to ensure they are receiving the support they are entitled to.