Business rates can be a significant expense for many businesses, and this is especially true for owners of empty listed buildings. Listed buildings are historic or architecturally significant structures that are protected by law, and as a result, they are subject to special regulations when it comes to business rates. In this article, we will explore the impact of business rates on empty listed buildings and the challenges that owners face in managing this expense.
Business rates are a tax on non-domestic properties in the UK, and they are calculated based on the rateable value of a property. This rateable value is determined by the Valuation Office Agency (VOA) and is used to calculate how much a property owner must pay in business rates each year. Business rates are a significant expense for many businesses, and they can be a particular challenge for owners of empty listed buildings.
Empty listed buildings are exempt from paying business rates for the first three months that they are empty. However, after this initial period, owners of empty listed buildings are subject to pay 100% of the business rates due on their property. This can be a substantial financial burden for owners of such buildings, especially if they are struggling to find a new tenant or buyer for the property.
One of the challenges that owners of empty listed buildings face is the high cost of maintaining and preserving these historic structures. Listed buildings require special care and attention to ensure that their historic features are preserved for future generations. This can be a costly endeavor, and when combined with the expense of paying business rates on an empty property, it can put a significant strain on the finances of the property owner.
Owners of empty listed buildings also face challenges when it comes to finding new tenants or buyers for their property. Listed buildings often have restrictions on what can be done to them, both externally and internally, which can make them less attractive to potential tenants or buyers. Additionally, the high cost of maintaining a listed building can deter potential buyers who may be unwilling to take on the financial burden of preserving a historic property.
Despite these challenges, there are some options available to owners of empty listed buildings to help alleviate the burden of business rates. One option is to apply for an exemption from paying business rates on the property. Owners of empty listed buildings can apply for a listed building exemption, which allows them to claim a 100% exemption from business rates for as long as the property remains empty.
Another option is to apply for a charitable or community interest exemption. If the empty listed building is being used for charitable or community purposes, the owner may be eligible for a 80% discount on their business rates. This can be a valuable option for owners who are seeking to put their empty listed building to use for the benefit of the community.
In conclusion, business rates on empty listed buildings can be a significant expense for property owners, but there are options available to help alleviate this burden. By understanding the regulations and exemptions available for listed buildings, owners can better manage the financial challenges that come with owning and maintaining a historic property. With careful planning and strategic use of available exemptions, owners of empty listed buildings can navigate the complexities of business rates and preserve these important pieces of architectural history for future generations.