As a landlord, one of the many expenses you have to contend with is business rates. These rates are taxes that are usually paid by the occupier of a commercial property. However, as a landlord, you may also be responsible for paying business rates if your property is vacant. In order to alleviate this financial burden, there are several schemes available that offer relief on business rates for landlords. In this article, we will explore the various options for landlord business rates relief and provide a comprehensive guide for property owners.
Landlords who own commercial premises that are unoccupied for a certain period of time are usually liable to pay business rates. These rates can be a substantial expense and can eat into your rental income. However, there are several relief schemes in place that can help reduce or even eliminate this financial burden. One of the most common forms of relief for landlords is the Empty Property Rates Relief.
Empty Property Rates Relief is a scheme that provides landlords with relief on business rates for properties that are unoccupied for a certain period of time. The relief is usually given for a period of three to six months, depending on the local authority. In some cases, landlords may be eligible for an extended period of relief if they can prove that they are actively seeking tenants for the property.
Another form of relief for landlords is the Small Business Rates Relief. This scheme is designed to help small businesses and landlords who own multiple small properties. If the rateable value of your property is below a certain threshold, you may be eligible for relief on your business rates. This can result in a significant reduction in the amount of rates you have to pay each year.
In addition to these relief schemes, there are also other options available for landlords to reduce their business rates liability. For example, if you are carrying out renovation works on your property, you may be eligible for relief under the Renovation Relief scheme. This scheme provides relief on business rates for properties that are undergoing structural changes or improvements. However, it is important to note that you will need to apply for this relief before the works begin in order to qualify.
One important thing to keep in mind when applying for business rates relief as a landlord is that each local authority has its own criteria and guidelines for determining eligibility. It is important to check with your local authority to find out what relief schemes are available in your area and how you can apply for them. Many local authorities have dedicated business rates teams that can provide guidance and assistance to landlords who are seeking relief.
It is also worth mentioning that the government has introduced several measures in recent years to help landlords with their business rates liability. For example, the government announced in 2020 that it would provide 100% relief on business rates for retail, leisure, and hospitality properties for a period of 12 months in response to the COVID-19 pandemic. This measure was intended to help businesses and landlords cope with the financial impact of the pandemic and to stimulate economic recovery.
In conclusion, business rates can be a significant expense for landlords, especially if a property is vacant. However, there are several relief schemes available that can help reduce or eliminate this financial burden. By understanding the various options for landlord business rates relief and working with your local authority, you can take steps to minimize your rates liability and protect your rental income. Don’t hesitate to explore the relief schemes available to you and take advantage of the support that is out there for landlords.