business rates on empty listed buildings can often be a point of contention for property owners and businesses alike. Listed buildings hold significant historical and architectural value, and as such, they often come with a unique set of challenges when it comes to business rates. In this article, we will explore the complexities of business rates on empty listed buildings and provide insights into how property owners can navigate this challenging landscape.
Listed buildings are considered to be of special architectural or historical interest, and as such, they are protected by law in the United Kingdom. This protection extends to both the exterior and interior of the building, which means that any alterations or changes to the building must be approved by the local planning authority. While owning a listed building can be a source of pride for many property owners, it also comes with its fair share of challenges, particularly when it comes to business rates.
Business rates are a tax on non-residential properties in the UK, including commercial properties, shops, offices, and warehouses. The rateable value of a property is calculated based on the rental value of the property as determined by the Valuation Office Agency (VOA). However, when it comes to listed buildings, the process of determining the rateable value can be much more complex.
One of the main issues that property owners of empty listed buildings face is the requirement to pay business rates even when the building is unoccupied. This can be a significant financial burden, particularly for property owners who are already facing challenges in finding tenants for their listed buildings. In some cases, property owners may have no choice but to keep their buildings empty due to restrictions on alterations or changes that can be made to the building. This can create a Catch-22 situation where property owners are unable to generate rental income from their buildings but are still required to pay business rates.
However, there are some exemptions and reliefs available for empty listed buildings when it comes to business rates. Property owners of empty listed buildings may be eligible for an exemption from paying business rates for a set period of time, typically 3 or 6 months. This can provide some relief for property owners who are struggling to find tenants for their buildings. In addition, there are also specific reliefs available for certain types of listed buildings, such as those that are undergoing repair or renovation works.
Property owners of empty listed buildings can also apply for listed building consent orders, which can provide relief from business rates for a longer period of time. Listed building consent orders are granted by the Secretary of State for Digital, Culture, Media and Sport, and they can provide relief from business rates for up to 5 years. This can be particularly beneficial for property owners who are undertaking extensive renovation works on their listed buildings and are therefore unable to generate any rental income.
It is important for property owners of empty listed buildings to work closely with their local planning authority and the VOA to ensure that they are taking full advantage of any exemptions or reliefs that may be available to them. By seeking professional advice and guidance, property owners can navigate the complexities of business rates on empty listed buildings and ensure that they are not paying more than they are legally required to.
In conclusion, business rates on empty listed buildings can be a complex and challenging issue for property owners. However, with careful planning and the right advice, property owners can navigate this landscape and ensure that they are not paying more than they are legally required to. By taking advantage of exemptions, reliefs, and listed building consent orders, property owners can mitigate the financial burden of business rates on their empty listed buildings and focus on preserving and protecting these valuable historical assets.