As a landlord, one of the most significant expenses you will incur is business rates. These rates are taxes that commercial property owners must pay to the local government based on the value of their property. However, there are some relief schemes available for landlords to help reduce their business rates burden. In this guide, we will explore everything you need to know about landlord business rates relief.
One of the most common forms of business rates relief for landlords is Small Business Rates Relief (SBRR). This scheme is designed to help small businesses, including landlords who own small commercial properties. To qualify for SBRR, the rateable value of your property must be below a certain threshold, which varies from one local authority to another. If your property meets the criteria, you can receive a discount on your business rates, or even be exempt from paying them entirely.
Another form of relief available to landlords is Mandatory Charitable Relief. If you lease your property to a registered charity, you may be eligible for relief on your business rates. This relief is calculated based on the charity’s use of the property and can result in a significant reduction in the amount you owe. It is worth noting that this relief is only available if the charity occupies the property for charitable purposes and not for profit.
Empty Property Relief is another form of business rates relief that can benefit landlords. If your property is unoccupied, you may be eligible for a discount on your business rates for a certain period. The length of time you can receive empty property relief varies depending on the type of property and the local authority. Some authorities offer a 100% discount for the first three or six months of vacancy, while others may provide a longer period of relief.
Retail Relief is a scheme aimed at supporting landlords who own retail properties. If your property is classified as a shop, restaurant, café, or drinking establishment, you may be eligible for retail relief. This relief can result in a significant reduction in your business rates, making it easier to attract tenants and maintain a steady income from your commercial property. To qualify for retail relief, your property must have a rateable value below a certain threshold, which is set by the local authority.
Rural Rate Relief is a form of business rates relief designed to support landlords who own properties in rural areas. If your property is located in a designated rural area, you may be eligible for a discount on your business rates. This relief can be beneficial for landlords with properties in remote locations where rental income may be lower than in urban areas. To qualify for rural rate relief, your property must meet certain criteria set by the local authority, such as being used for agricultural purposes or being the only village shop.
In addition to these specific relief schemes, landlords can also benefit from the Government’s Retail Hospitality and Leisure Grant Fund. This fund was introduced in response to the COVID-19 pandemic to provide financial support to businesses affected by lockdown restrictions. Landlords who own properties in the retail, hospitality, or leisure sectors may be eligible for a grant to help cover their business rates expenses. This fund has been a lifeline for many landlords struggling to cope with the financial impact of the pandemic and has provided much-needed relief during these challenging times.
In conclusion, landlord business rates relief is a valuable resource that can help reduce the financial burden of owning commercial property. By taking advantage of the various relief schemes available, landlords can save money on their business rates and increase their profitability. Whether you qualify for Small Business Rates Relief, Charitable Relief, Empty Property Relief, Retail Relief, Rural Rate Relief, or the Retail Hospitality and Leisure Grant Fund, there are options available to support you as a landlord. Be sure to explore these relief schemes and take advantage of the financial assistance they provide.