As a landlord, managing expenses can be a challenging task One major cost that property owners face is business rates, also known as non-domestic rates, which are taxes imposed on commercial properties These rates can often be a significant financial burden for landlords, especially during times of economic uncertainty or when properties are left vacant.
However, there are several ways in which landlords can alleviate some of the financial strain caused by business rates One of the key solutions is to take advantage of various relief schemes that are available to property owners In this article, we will explore the different types of business rates relief that landlords can apply for and how they can maximize these benefits for their properties.
1 Small Business Rates Relief
One of the most common types of business rates relief is Small Business Rates Relief (SBRR) This relief scheme is designed to support small businesses by reducing the amount of business rates they have to pay In England, properties with a rateable value of less than £12,000 are eligible for 100% relief, while those with a rateable value between £12,001 and £15,000 can receive tapered relief.
Landlords who own properties that fall within the eligibility criteria for SBRR can apply for this relief on behalf of their tenants By doing so, landlords can attract small businesses to their properties and potentially reduce the risk of vacancies, while also benefiting from a reduction in their own business rates liability.
2 Empty Property Rates Relief
When a commercial property becomes empty, landlords are still required to pay business rates on the property unless they are eligible for Empty Property Rates Relief In England, properties that are empty for three months or six months (depending on the property type) can apply for a 100% exemption from business rates.
Landlords can take advantage of this relief by notifying the local council of the property’s vacant status and applying for the exemption By doing so, landlords can avoid paying business rates on properties that are temporarily vacant and minimize the financial impact of vacancies on their property portfolios.
3 landlord business rates relief. Retail Rates Relief
In response to the challenges faced by the retail sector, the UK government has introduced various relief schemes to support retail businesses and landlords with retail properties For example, properties with a rateable value of less than £51,000 in England are eligible for a one-third reduction in their business rates bills for two years from April 2019.
Landlords who own retail properties can work with their tenants to ensure that they are aware of and apply for this relief By doing so, landlords can help their tenants reduce their operating costs and potentially attract new businesses to their properties, while also benefiting from a reduction in their own business rates liability.
4 Charitable Rates Relief
Landlords who rent out properties to registered charities or community amateur sports clubs may be eligible for Charitable Rates Relief Properties that are used wholly or mainly for charitable purposes can receive an 80% discount on their business rates bills.
Landlords can work with their tenants to ensure that they are aware of and apply for this relief if they are eligible By supporting charitable organizations, landlords can contribute to the community while also reducing their own business rates liability.
5 Discretionary Rates Relief
In addition to the standard relief schemes, local councils have the discretion to grant additional relief to businesses and landlords in certain circumstances This could include providing relief to properties that have been adversely affected by local events, economic conditions, or other factors.
Landlords who believe that their properties may qualify for discretionary rates relief can make representations to their local council outlining the reasons why relief should be granted By presenting a strong case and demonstrating the impact on their properties, landlords may be able to secure additional relief and further reduce their business rates liability.
In conclusion, business rates relief can be a valuable tool for landlords to minimize their financial burden and support their tenants in challenging economic times By taking advantage of the various relief schemes available, landlords can attract new businesses, reduce vacancies, and contribute to the community while also benefiting from a reduction in their own business rates liability By staying informed about the different types of relief available and working closely with their tenants and local councils, landlords can maximize their benefits and optimize their property portfolios.