Listed buildings hold a special place in history and are often treasured for their architectural significance. These buildings are protected by law to ensure their preservation for future generations to enjoy. However, being the owner of a listed building comes with its own set of challenges, one of which is business rates.
Business rates are taxes levied on most non-domestic properties, including commercial buildings, by local authorities in the UK. Listed buildings are not exempt from paying business rates, which means owners of these buildings have to factor in these costs when managing their properties.
Listed buildings are classified into three categories: Grade I, Grade II*, and Grade II. Grade I buildings are considered to be of exceptional interest, Grade II* buildings are particularly important buildings of more than special interest, and Grade II buildings are of special interest. Each category has its own set of rules and regulations regarding maintenance and alterations.
business rates on 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 an estimate of the annual rental value of the property on a certain date and is used to calculate the amount of business rates that need to be paid.
Listed buildings often have higher rateable values compared to non-listed buildings due to their historic and architectural significance. This means that owners of listed buildings may have to pay higher business rates, putting them at a disadvantage compared to owners of non-listed properties.
One way in which owners of listed buildings can reduce their business rates is by applying for business rates relief. There are several types of relief available to owners of listed buildings, including:
1. Charitable relief: If a listed building is used for charitable purposes, the owner may be entitled to relief on their business rates. This can help reduce the financial burden on charitable organizations that own listed buildings.
2. Small business rates relief: Owners of listed buildings who operate small businesses may be eligible for small business rates relief, which can significantly reduce the amount of business rates they have to pay.
3. Empty property relief: Owners of listed buildings that are temporarily empty may be entitled to empty property relief, which provides a discount on business rates for a certain period of time. This can help reduce the costs associated with owning a vacant listed building.
It is important for owners of listed buildings to be aware of the various types of relief available to them and to take advantage of these opportunities to reduce their business rates. However, it is also crucial for owners to ensure that their listed buildings are properly maintained in accordance with the regulations set out by Historic England and other relevant authorities.
Maintaining a listed building can be a costly endeavor, as owners are required to use specific materials and techniques to preserve the historic fabric of the building. This can increase the overall cost of ownership and may put additional strain on owners who are already struggling to pay their business rates.
One way in which owners of listed buildings can mitigate the impact of business rates is by seeking professional advice from organizations such as the Listed Property Owners’ Club. These organizations can provide guidance and support to owners of listed buildings, helping them navigate the complex regulations surrounding listed buildings and business rates.
In conclusion, business rates on listed buildings can be a significant financial burden for owners, but there are ways in which they can reduce the costs associated with owning a listed property. By taking advantage of the various types of relief available and seeking professional advice, owners of listed buildings can better manage their business rates and ensure the preservation of these important heritage assets for future generations to enjoy.