As a landlord, one of the major costs you face is business rates These rates are charges that must be paid by owners of non-domestic properties, such as shops, offices, and warehouses The amount you pay is based on the rateable value of your property, which is assessed by the Valuation Office Agency (VOA).
However, there are ways for landlords to reduce the amount of business rates they have to pay One such way is through business rates relief This relief can come in many forms and it’s important for landlords to be aware of the options available to them.
There are a few different types of business rates relief that landlords can take advantage of The most common form is small business rates relief This relief is available to properties with a rateable value below a certain threshold, which varies depending on the region In England, for example, properties with a rateable value of up to £15,000 are eligible for 100% relief, while properties with a rateable value between £15,000 and £51,000 are eligible for tapered relief.
Another form of business rates relief is rural rates relief This relief is available to properties in rural areas that meet certain criteria, such as being used for agricultural purposes Properties that qualify for rural rates relief can receive a discount of up to 100% on their business rates.
Charitable rates relief is another option for landlords This relief is available to properties owned by charities and used for charitable purposes Properties that qualify for charitable rates relief can receive a discount of up to 80% on their business rates.
Finally, there is also empty property rates relief This relief is available to properties that are empty and unsuitable for occupation landlord business rates relief. Properties that qualify for empty property rates relief can receive a discount of up to 100% for a limited period of time.
In addition to these specific forms of relief, there are also general ways for landlords to reduce their business rates burden One way is to ensure that your property is accurately assessed by the VOA If you believe that the rateable value of your property is too high, you can challenge the assessment and potentially reduce your business rates liability.
Another way to reduce your business rates is to take advantage of any available exemptions or reliefs For example, properties that are used for certain purposes, such as public toilets or religious worship, may be exempt from business rates altogether It’s important to research the options available to you and ensure that you are maximising your relief.
Landlords can also benefit from business rates relief by investing in energy efficiency measures Properties that are more energy efficient may qualify for discounts on their business rates This can be achieved through measures such as installing energy-efficient lighting, heating, and insulation.
Finally, landlords can reduce their business rates liability by appealing against any penalties or fines imposed by the local council If you believe that a penalty is unfair or unjustified, you have the right to challenge it and potentially have it reduced or waived.
In conclusion, business rates relief is a valuable tool for landlords looking to reduce their costs and maximise their profits By taking advantage of the various forms of relief available, challenging assessments, investing in energy efficiency, and appealing against penalties, landlords can ensure that they are not paying more than they need to in business rates It’s important for landlords to be proactive in seeking relief and to stay informed about the options available to them By doing so, landlords can save money and improve the financial performance of their properties.