Listed buildings are a significant part of the UK’s architectural heritage, with their charm, character, and historical significance adding value to the local communities and landscapes. Whether it is a medieval castle, a Victorian townhouse, or a Georgian mansion, these structures are protected by law to ensure they are preserved for future generations to enjoy. However, owning a listed building comes with its own set of challenges, one of which is dealing with business rates.
Business rates are taxes paid by those who occupy non-domestic properties, such as shops, offices, and factories, to contribute to the cost of local services. The rateable value of a property is used to calculate how much business rates need to be paid. Listed buildings are no exception when it comes to business rates, and it is essential for owners to understand how these rates are calculated and what exemptions or reliefs are available to them.
Listed buildings are generally subject to business rates, just like any other commercial property. The rateable value of a listed building is determined by the Valuation Office Agency (VOA), based on the property’s rental value as of a certain date. This rateable value is then multiplied by the business rates multiplier set by the government to calculate the annual business rates bill.
However, there are some exemptions and reliefs available to owners of listed buildings to reduce their business rates liability. One of the most common reliefs is the Listed Building Exemption, which provides total relief from business rates for listed buildings that are unoccupied. This exemption applies for as long as the building remains unoccupied and can provide significant savings for owners of listed buildings that are undergoing renovation or repair.
Another relief available to owners of listed buildings is the Small Business Rate Relief scheme, which provides a discount on business rates for properties with a rateable value below a certain threshold. This relief can be particularly beneficial for small businesses operating out of listed buildings, helping them to save money on their business rates bills.
In addition to these reliefs, owners of listed buildings may also be able to take advantage of the Empty Property Relief scheme, which provides a discount on business rates for properties that are empty for a certain period. This relief can be useful for owners of listed buildings that are struggling to find tenants or are in need of repairs, helping them to manage their costs while the property is vacant.
It is essential for owners of listed buildings to be aware of the available reliefs and exemptions to ensure they are not paying more business rates than necessary. By taking advantage of these schemes, owners can reduce their business rates liability and save money that can be reinvested back into the property for maintenance and repair.
In some cases, owners of listed buildings may also be eligible for Business Rates Retention, which allows local authorities to retain a portion of the business rates paid by properties in their area. This scheme aims to give local authorities more control over their finances and incentivize them to support economic growth in their areas. Owners of listed buildings can benefit from this scheme if their property is contributing to local economic development and growth.
Overall, business rates on listed buildings can be a complex and costly affair, but with the right knowledge and understanding of the available reliefs and exemptions, owners can manage their business rates liability effectively. Listed buildings play a crucial role in preserving our architectural heritage and should be supported and maintained for future generations to enjoy. By taking advantage of the available schemes, owners of listed buildings can reduce their costs and ensure their properties are well-maintained for years to come.