Navigating Business Rates On Empty Listed Buildings
Business rates are a contentious issue for many businesses, but when it comes to empty listed buildings, the situation becomes even more complex. Empty listed buildings hold a special place in our communities, often representing history and architectural significance. However, the financial burden of business rates can be a significant obstacle for property owners. In this article, we will explore the regulations surrounding business rates on empty listed buildings and provide guidance on how property owners can navigate this challenging issue.
Listed buildings are protected by law due to their historical or architectural significance. These buildings are designated as Grade I, Grade II*, or Grade II listed by Historic England, and come with strict regulations to ensure their preservation. While owning a listed building can be a point of pride, it also comes with its own set of challenges, including business rates on empty properties.
Under current regulations, owners of empty listed buildings are still required to pay business rates. The rationale behind this requirement is to discourage property owners from leaving buildings empty for extended periods, as empty properties can detract from the overall vitality and attractiveness of an area. In some cases, the government has implemented exemptions for certain types of properties, such as newly built properties or those undergoing major refurbishment, but listed buildings are not typically included in these exemptions.
For property owners, paying business rates on an empty listed building can present a significant financial burden. Business rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). The rateable value is multiplied by the current multiplier set by the government to calculate the annual business rates bill. For empty properties, the rateable value is typically based on the rental value of the property if it were occupied.
One option for property owners looking to reduce the financial impact of business rates on empty listed buildings is to apply for an exemption or relief. Some local authorities offer discretionary rate relief for listed buildings, which can provide temporary relief from paying business rates. This relief is typically granted for a limited period, such as one or two years, and may require the property owner to demonstrate that efforts are being made to bring the property back into use.
Another avenue for property owners is to explore the possibility of claiming listed building relief. Listed building relief can provide a 100% reduction in business rates for properties that are unoccupied and are either listed buildings or have a rateable value of less than £2,900. To qualify for this relief, property owners must be able to provide evidence that the property is a listed building and that it is not in use.
In some cases, property owners may also be able to claim empty property relief, which provides a 100% reduction in business rates for properties that have been empty for a certain period. The specific period of time required for empty property relief varies by local authority, so property owners should check with their local council for more information on eligibility criteria.
While these relief options can provide some financial respite for property owners, it is important to note that they are typically temporary measures. The long-term solution for owners of empty listed buildings is to find a sustainable use for the property that can generate income and bring the building back into active use. This can involve exploring opportunities for development, restoration, or adaptive reuse of the building to ensure its long-term preservation and viability.
Navigating business rates on empty listed buildings can be a challenging task for property owners, but with the right information and guidance, it is possible to find solutions that minimize the financial impact and support the preservation of these important buildings. By exploring relief options, engaging with local authorities, and considering long-term strategies for the property, owners of empty listed buildings can ensure that these historic assets remain a valuable part of our communities for years to come.
In conclusion, business rates on empty listed buildings present a unique challenge for property owners, but there are options available to alleviate the financial burden and support the preservation of these important buildings. By understanding the regulations surrounding business rates, exploring relief opportunities, and pursuing sustainable solutions for the property, owners of empty listed buildings can navigate this complex issue and ensure the long-term viability of these historic assets.