Being a landlord can be a lucrative business venture, but it also comes with its fair share of expenses One major cost that landlords often have to contend with is business rates These rates are taxes paid on non-domestic properties, and they can add up to a substantial amount each year However, there are ways for landlords to receive relief on their business rates, which can help them maximize their profitability.
One of the most common forms of relief available to landlords is small business rates relief This relief is aimed at helping small businesses, including landlords who own multiple properties, by reducing the amount of business rates they have to pay To qualify for small business rates relief, a landlord’s property must have a rateable value below a certain threshold set by the government In England, this threshold is £15,000, but it can vary in other parts of the UK.
Landlords who qualify for small business rates relief can receive a discount on their business rates bill In England, for example, properties with a rateable value of £12,000 or less are eligible for 100% relief, meaning the landlord pays no business rates at all Properties with a rateable value between £12,001 and £15,000 are eligible for tapered relief, with the amount of relief decreasing as the rateable value increases This can result in significant savings for landlords, allowing them to keep more of their rental income as profit.
Another form of relief available to landlords is empty property rates relief This relief is designed to help landlords who have empty properties and are therefore not receiving any rental income In these cases, the landlord is still required to pay business rates on the property, which can be a significant financial burden landlord business rates relief. However, empty property rates relief allows landlords to apply for a temporary exemption from paying business rates on properties that have been unoccupied for a certain period of time.
In England, properties are exempt from business rates for the first three months they are empty After this initial three-month period, landlords can apply for a further three-month exemption if they provide evidence that they are actively trying to market the property for rent This exemption can be extended for up to a year in total, providing much-needed relief for landlords who are struggling to find tenants for their properties.
In addition to small business rates relief and empty property rates relief, landlords may also be eligible for other forms of relief depending on their individual circumstances For example, properties used for charitable purposes, such as community centres or sports facilities, may be eligible for charitable rates relief, which can significantly reduce the amount of business rates due Landlords who own listed buildings may also be able to apply for listed building consent, which can result in a reduction in their business rates bill.
Overall, there are a number of ways for landlords to receive relief on their business rates, allowing them to maximize their profitability and reduce their operating costs By taking advantage of schemes such as small business rates relief, empty property rates relief, and other forms of relief, landlords can ensure that they are not paying more in business rates than necessary This, in turn, can help them to increase their rental yields and improve their bottom line.
In conclusion, business rates relief can be a valuable tool for landlords looking to maximize their profitability By taking advantage of schemes such as small business rates relief and empty property rates relief, landlords can reduce their operating costs and increase their rental yields By staying informed about the various forms of relief available and taking advantage of any opportunities that apply to their properties, landlords can ensure that they are getting the best possible return on their investment
By understanding the options available to them and staying up to date on changes in business rates relief policies, landlords can navigate the complex world of business rates with confidence and make the most of their property investments.