Business rates are a form of tax that businesses in the UK must pay on their commercial properties. These rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency. However, when it comes to listed buildings, the rules surrounding business rates can be a bit more complex.
Listed buildings are properties that are deemed to have special architectural or historic interest and are therefore protected by law. These buildings are listed on the National Heritage List for England and are classified into three grades: Grade I, Grade II*, and Grade II. While owning a listed building can come with prestige and potentially increased property value, it can also mean higher costs, including business rates.
business rates on listed buildings are calculated in the same way as on any other commercial property, based on the rateable value. However, there are some exemptions and reliefs available to owners of listed buildings that can help reduce the amount they have to pay.
One important relief available to owners of listed buildings is the Listed Building Exemption. This exemption applies to properties that are used for the sole purpose of preserving the character of the building. Owners of such properties are not required to pay business rates at all. This exemption is important in incentivizing the conservation of historic buildings and is a way for the government to show its support for preservation efforts.
In addition to the Listed Building Exemption, owners of listed buildings may also be eligible for other reliefs and discounts. For example, if a listed building has been empty for a certain period of time, the owner may be eligible for Empty Property Relief. This relief can provide a discount on business rates for a limited period, helping to ease the financial burden on the owner while they work to bring the property back into use.
It’s worth noting that not all listed buildings will qualify for reliefs and exemptions. Owners should check with their local council or the Valuation Office Agency to determine what options are available to them. In some cases, owners may need to provide evidence that the property is being used in a way that is in line with the requirements for relief.
Owners of listed buildings should also be aware that alterations or improvements to the property could affect their business rates. If changes are made to a listed building that increase its rateable value, the owner may see an increase in their business rates bill. It’s important to keep the Valuation Office Agency informed of any changes to the property to ensure that rates are accurately calculated.
In some cases, owners of listed buildings may be concerned about the impact of business rates on their finances. While it’s true that owning a listed building can come with higher costs, it’s also important to remember the benefits of owning a historic property. Listed buildings are often highly sought after by businesses and can command higher rents or sale prices than non-listed properties. Additionally, owning a listed building can come with a sense of pride and a connection to the past that can be invaluable to some owners.
Overall, business rates on listed buildings can be a complex issue, but with the right information and support, owners can navigate the system effectively. By taking advantage of the exemptions and reliefs available and keeping the relevant authorities informed, owners of listed buildings can ensure that they are paying a fair amount of rates while still enjoying the benefits of owning a historic property.