Business rates can be a burden for many businesses, but what happens when a building is listed as having historical or architectural significance? The rules surrounding business rates on empty listed buildings can be even more complex and confusing. In this article, we will explore the ins and outs of business rates on empty listed buildings and provide guidance on how to navigate this unique situation.
Listed buildings are categorized based on their architectural or historical importance, and they can be protected by law to prevent their destruction or modification. This means that owners of listed buildings must adhere to strict regulations when it comes to making changes to the property. However, this protection comes at a cost, as listed buildings are often subject to higher business rates than non-listed buildings.
When a listed building is empty, the situation becomes even more complicated. In the UK, owners of empty commercial properties are required to pay business rates on the empty property. This is intended to encourage property owners to bring their empty properties back into use, thus stimulating economic activity. However, listed buildings present a unique challenge, as the restrictions on what can be done to the property can make it difficult to find a suitable tenant or use for the building.
The business rates on empty listed buildings are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). The rateable value is essentially an estimate of how much rent the property could fetch on the open market. In England, the standard multiplier used to calculate business rates is set by the government and can vary from year to year.
Owners of empty listed buildings may be eligible for some relief from business rates. In England, owners of empty listed buildings are eligible for a three-month exemption from business rates, followed by a 100% discount for a further three months. After this period, the owner will be required to pay the full business rates unless they qualify for another form of relief.
One form of relief that owners of empty listed buildings may be eligible for is the Listed Building Exemption. This exemption applies to properties that are unoccupied and are classified as being of historical or architectural interest. Owners of properties that meet these criteria may be eligible for a 100% discount on their business rates.
Another form of relief that owners of empty listed buildings may be able to claim is the Small Business Rates Relief. This relief is available to businesses with a rateable value below a certain threshold, and can result in a significant reduction in the amount of business rates that need to be paid.
Navigating the rules and regulations surrounding business rates on empty listed buildings can be challenging, but there are steps that property owners can take to minimize the impact of these rates. One option is to explore the possibility of obtaining a temporary use or occupation of the property. By doing so, the property may be eligible for a further period of relief from business rates, providing the owner with more time to find a permanent solution.
Property owners may also want to consider negotiating with the local council to reach an agreement on the business rates payable. Councils have the discretion to grant relief in certain circumstances, such as when the property is undergoing substantial repair or renovation work. By engaging in open and honest dialogue with the council, property owners may be able to secure a reduction in their business rates.
In conclusion, business rates on empty listed buildings can be a significant financial burden for property owners. However, by understanding the rules and regulations surrounding these rates, and exploring the various forms of relief that may be available, property owners can take steps to mitigate the impact of these rates. Navigating the complexities of business rates on empty listed buildings may be challenging, but with the right approach, property owners can successfully manage this unique situation.