Rates on rental properties
Many landlords, owners and tenants are not fully aware of their liability for rates payments on rental properties.
The rules regarding rates for rental properties are different from rules governing owner-occupier properties.
Liability for rates on a rental property is determined by the Capital Value for Domestic Properties or Net Annual Value for Non Domestic Properties.
From 1 April 2015 where rented domestic property has an assessed capital value of £150,000 or less the landlords liable for the rates.
For properties with a higher value (above £150,000) the tenant is liable for rates unless the landlord has signed up to a formal agreement. The exception to this is with HMO property.
The landlord allowance has been standardised now at 10% from 1 April 2015.
This article was written by Bright Mortgages