Business rates are a constant topic of discussion among property owners, especially when it comes to empty listed buildings. These buildings are often seen as a burden to their owners, especially when they have to pay significant business rates on them. In this article, we will explore what business rates are, how they are calculated, and what exemptions exist for listed buildings.
Business rates are a tax on non-domestic properties that are paid by the owner or the occupier of the property. These rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). The rateable value represents the open market rental value of the property at a specific date and is used to calculate the business rates that are due.
Listed buildings are properties that are deemed to have special architectural or historic interest and are therefore protected by law. These buildings are often subject to additional regulations and restrictions, which can make them more difficult to develop or modify. However, the fact that a building is listed does not exempt it from paying business rates.
In fact, listed buildings are still required to pay business rates unless they fall under certain exemptions. One such exemption is that listed buildings that are entirely unoccupied are eligible for a 100% business rates relief for a maximum of 12 months. This relief is intended to give owners of listed buildings some financial support while they find a new occupier for the property.
After the 12-month relief period has expired, owners of listed buildings may be eligible for a further three months of relief, during which they will pay rates at a reduced rate. However, this relief is not guaranteed and is subject to approval by the local council. Owners of listed buildings must apply for this relief and provide evidence that they are actively trying to find a new occupier for the property.
If a listed building remains empty for an extended period of time, the local council has the authority to charge full business rates on the property. This can be a significant financial burden for property owners, especially if they are struggling to find a new occupier for the building. In some cases, property owners may be forced to sell the building in order to avoid paying the full business rates.
One of the main challenges for owners of listed buildings is finding a suitable occupier for the property. Listed buildings often come with restrictions and regulations that can make them less attractive to potential tenants. Additionally, the cost of renovating and maintaining a listed building can be high, making it difficult for owners to find a tenant willing to cover these expenses.
To mitigate these challenges, some owners of listed buildings choose to make use of the building themselves. By using the building as their own office or retail space, owners can avoid paying business rates on the property and generate income from renting out part of the space to other businesses. This approach can be beneficial for both the owner and the local community, as it helps to preserve the historic character of the building while generating economic activity.
In conclusion, business rates on empty listed buildings can be a significant financial burden for property owners. While there are exemptions and relief options available, owners must actively seek these options and provide evidence that they are trying to find a new occupier for the property. By understanding the regulations surrounding business rates on empty listed buildings and exploring creative solutions, owners can mitigate the financial impact of owning a listed building and preserve these important historic structures for future generations.