Business rates are a crucial aspect of property ownership and can have a significant impact on a business’s bottom line. When it comes to empty listed buildings, the rules around business rates can be complex and confusing. In this article, we will explore the intricacies of business rates on empty listed buildings and how owners can navigate this often confusing landscape.
Listed buildings are those that are deemed to have special architectural or historic interest and are protected by law. This means that any changes to listed buildings must be approved by the local planning authority and that owners have a responsibility to maintain the building in a way that preserves its historic character. However, for owners of empty listed buildings, this responsibility can come with an additional cost in the form of business rates.
In the UK, business rates are a tax that businesses pay on the non-domestic property they occupy. This tax is based on the rateable value of the property, which is determined by the Valuation Office Agency. For listed buildings, the rateable value can be significantly higher than for non-listed properties, due to the additional costs associated with maintaining and preserving the building’s historic character.
One of the key issues facing owners of empty listed buildings is that they are still liable to pay business rates, even if the property is not generating any income. This can be a significant burden for owners who may already be struggling to cover the costs of maintaining and preserving the building. In some cases, owners may be tempted to allow the building to fall into disrepair in order to avoid paying business rates, but this is not a sustainable or responsible solution.
Fortunately, there are some exemptions and reliefs available to owners of empty listed buildings that can help to reduce the burden of business rates. For example, owners may be able to claim an exemption from business rates for a limited period of time if they can demonstrate that the building is undergoing repair or structural work. This can provide owners with some much-needed breathing space to carry out vital repair work without the additional pressure of paying business rates.
In addition, owners of empty listed buildings may be eligible for other forms of relief, such as the Empty Property Relief scheme. This scheme provides a 50% discount on business rates for properties that have been empty for more than three months. While this can help to reduce the financial burden on owners, it is worth noting that this relief is only temporary and that owners will still be liable to pay the full rate after a certain period of time.
Another option for owners of empty listed buildings is to apply for heritage property relief. This relief is available for properties that are used for the preservation of a national heritage and can provide owners with a 100% discount on business rates. This can be a valuable resource for owners who are dedicated to preserving their building’s historic character and can help to offset some of the costs associated with maintaining a listed property.
It is important for owners of empty listed buildings to be proactive in seeking out the available exemptions and reliefs in order to reduce the financial burden of business rates. This may require some research and paperwork, but the potential savings can make it well worth the effort. Owners should also be aware of the potential consequences of failing to pay business rates on time, as this can result in legal action being taken against them.
In conclusion, business rates on empty listed buildings can be a significant financial burden for owners, but there are exemptions and reliefs available that can help to reduce this burden. By being proactive in seeking out these opportunities and by maintaining the building in a responsible way, owners can navigate the complex landscape of business rates and preserve their listed building for future generations.