For landlords who own commercial properties, business rates can often be a significant expense that eats into their profits However, there are ways for landlords to reduce the amount they have to pay in business rates through various relief schemes offered by the government In this article, we will explore the different types of business rates relief available to landlords and provide tips on how they can take advantage of these schemes to maximize their savings.
One of the most common forms of business rates relief available to landlords is Small Business Rate Relief (SBRR) This relief is aimed at businesses that occupy a single property with a rateable value below a certain threshold In England, properties with a rateable value of £15,000 or less are eligible for 100% relief, while properties with a rateable value between £15,000 and £51,000 are eligible for tapered relief Landlords who have tenants operating small businesses in their properties may be able to pass on these savings to their tenants, making their properties more attractive to potential renters.
Another form of business rates relief that landlords can benefit from is Empty Property Rate Relief This relief is available to landlords who own properties that have been vacant for a certain period of time In England, properties are eligible for 100% relief for the first three months they are empty, followed by a 50% reduction for the next three months After the initial six-month period, certain types of properties may be eligible for an extended period of relief, such as industrial properties which can receive 100% relief for the first 18 months they are empty By taking advantage of this relief, landlords can reduce the financial burden of owning empty properties and incentivize them to bring their properties back into use more quickly.
In addition to SBRR and Empty Property Rate Relief, there are other relief schemes that landlords can explore to reduce their business rates landlord business rates relief. These include Charitable Rate Relief, which is available to landlords who lease their properties to registered charities, and Rural Rate Relief, which is available to properties in rural areas with a rateable value of less than £12,000 By researching the different relief schemes available and understanding the eligibility criteria, landlords can identify the ones that apply to their properties and take steps to apply for relief.
When seeking business rates relief, it is important for landlords to keep abreast of changes in legislation and government policies that may affect the relief schemes they are eligible for For example, the government announced in its 2021 Budget that it would extend 100% business rates relief for eligible retail, hospitality, and leisure properties in England for an additional three months until the end of June 2021 This extension provides a much-needed reprieve for landlords who own properties in these sectors that have been hard hit by the COVID-19 pandemic.
In order to maximize their savings through business rates relief, landlords should also consider seeking professional advice from experts in the field Property advisors and rating surveyors can provide valuable insights into the relief schemes available and help landlords navigate the application process By enlisting the help of professionals, landlords can ensure they are making full use of the relief schemes that apply to their properties and avoid missing out on potential savings.
In conclusion, business rates relief offers a valuable opportunity for landlords to reduce the financial burden of owning commercial properties and increase their profitability By exploring the different relief schemes available, keeping abreast of changes in legislation, and seeking professional advice, landlords can maximize their savings and make their properties more attractive to tenants With the right approach, landlords can navigate the complex world of business rates relief and take full advantage of the opportunities available to them.