As a landlord, you are responsible for various costs associated with owning and managing your rental properties One of the significant expenses you may encounter is business rates, also known as non-domestic rates in Scotland These rates are taxes that are imposed on most non-domestic properties, including rental properties, and are collected by local authorities to help fund local services.
However, as a landlord, you may be eligible for business rates relief, which can help reduce the financial burden of this expense In this article, we will explore what business rates relief is, who is eligible for it, and how you can apply for it as a landlord.
Business rates relief is a scheme introduced by the government to provide financial support to businesses and property owners facing high business rates bills The relief comes in various forms, including discounts, exemptions, and reliefs, and aim to help businesses manage their operating costs and stay competitive in the market.
One of the most common forms of business rates relief for landlords is small business rate relief This relief is available to landlords who own properties with a rateable value below a certain threshold In England, properties with a rateable value of less than £15,000 are eligible for this relief, while in Scotland, properties with a rateable value of less than £18,000 are eligible.
If you qualify for small business rate relief, you may be entitled to a discount on your business rates bill The amount of discount you receive will depend on the rateable value of your property and the specific relief scheme in your area In some cases, you may be eligible for a 100% discount, meaning that you will not have to pay any business rates at all.
Another form of business rates relief that landlords may be eligible for is rural rate relief landlord business rates relief. This relief is designed to support businesses and property owners in rural areas facing high business rates bills If your property is located in a designated rural area, you may be entitled to a discount on your business rates bill.
In addition to these reliefs, there are also other forms of business rates relief available to landlords, such as empty property relief and charitable rate relief Empty property relief is available to landlords who own properties that are empty and unfurnished, while charitable rate relief is available to landlords who rent their properties to registered charities.
To apply for business rates relief as a landlord, you will need to contact your local authority and provide them with the necessary documentation This documentation may include details about your property, your tenancy agreement, and any other relevant information that the local authority may require.
It is essential to note that business rates relief is not automatic, and you will need to apply for it to receive the discount or exemption Make sure to keep up to date with the deadlines and requirements for applying for relief in your area to ensure that you do not miss out on any potential savings.
In conclusion, business rates relief is a valuable scheme that can help landlords reduce the financial burden of business rates on their rental properties By understanding the different forms of relief available and how to apply for them, you can take advantage of these benefits and save money on your operating costs Contact your local authority today to find out if you are eligible for business rates relief and start saving on your business rates bills.