How to qualify for a 7.5 per cent allowance on rates for rental properties
If you are responsible for rates on one or more rental properties, you may be entitled to a 7.5 per cent allowance on rates. To qualify you must meet certain criteria.
How to qualify for the 7.5 per cent allowance in rates
To qualify you must meet the following criteria:
- have a portfolio of one or more properties that you rent to tenants
- be able to provide Land & Property Services (LPS) with a current tenancy agreement for each of these properties
- have domestic properties with Capital Values (CV) not exceeding £150,000 and / or business properties with Net Annual Values (NAV) not exceeding £1,590
- pay the full discounted amount by 30 September each year
How to apply
If you feel that you meet all the necessary criteria you can apply to LPS. You must complete and return the relevant form to LPS. This is a writeable document, which means that you can complete on screen, print and send to LPS. Alternatively, you can save the document to your desktop, complete the form and send as an attachment to LPS landlords section - contact details are at the bottom of the page:
You can also call LPS who can deal directly with your request or issue you with a form. Contact details are at the bottom of the page.
If you meet the qualifying criteria, LPS will then:
- amend your rate account to reflect that you are entitled to the 7.5 per cent allowance
- issue you with a new bill (unless you have already paid your current rate bill(s)
If you do not meet the qualifying criteria, LPS will contact you to let you know. If LPS needs more information, they will contact you directly.
How to add another property to an existing rate bill
You can also contact the Central Landlord Team who can deal with your request directly. Contact details for them are at the bottom of the page.
What happens if you add a new property after 30 September?
If you add another property to your portfolio after the 30 September, you will be issued with a bill for this individual property. To avail of the 7.5 per cent allowance, payment must be received by LPS by the date quoted on the bill, which will be one month from the date the bill was issued. If payment is not received by this time the allowance will not be awarded. You need to ensure that you leave enough time for your payment to reach your rate account - at least five working days is recommended.
Rating of Empty Homes
With the introduction of Rating of Empty Homes in October 2011, the same level of rates is due on all domestic properties whether occupied or empty.
How are rental properties affected?
The main impact is on landlords who currently have an Article 20 account and receive a 7.5 per cent allowance. These landlords now have to pay 100 per cent of the rates due when the property is empty and no allowance is awarded for that period.
Landlords can choose to move to a different rate account that offers an allowance of 12.5 per cent. In almost every circumstance landlords benefit from moving to the 12.5 per cent allowance as they will receive a higher rate of allowance whether the property is occupied or empty.
Change of ownership
If the ownership of one of your properties changes you must provide written details of the new owner to LPS. Please send this to:
Land & Property Services
Central Landlords Team
27 - 45 Great Victoria Street
You can also contact the Central Landlord Team who can deal with your query directly - contact details are at the bottom of the page.
You should do this immediately otherwise you will continue to receive a rate bill for this property.
Providing proof of change of ownership
You must provide a copy of the solicitor’s letter showing the following:
- completion date of the sale
- name and contact details of the new owner or name of the solicitor / estate agent who acted on behalf of the new owner
How to pay your rate bill
For full details on how you can pay your landlord rate account, please click on the link below:
Contact details for landlords section
- e-mail: firstname.lastname@example.org
- phone: 0300 200 7801
- textphone: 1800 1101