Business rates are a necessary evil for many businesses across the UK, often representing a significant portion of their overhead costs. These rates are set by the local council and are calculated based on the rateable value of the property. For business owners who own or rent listed buildings, there are additional complexities to consider when it comes to business rates.
Listed buildings are properties that are of special architectural or historic interest and are protected by law. These buildings are classified into three categories in the UK: Grade I, Grade II*, and Grade II. Despite their historical significance, listed buildings can be a financial burden for their owners, especially when they are left empty.
One of the main challenges that owners of empty listed buildings face is the payment of business rates on these properties. Under current legislation, business rates are still levied on empty commercial properties, including empty listed buildings. This means that owners of such properties are required to pay rates on a property that may not be generating any income.
Many critics argue that this system is unfair and discourages owners from investing in and maintaining listed buildings. However, there are some exemptions and reliefs available that can help alleviate the financial burden of business rates on empty listed buildings.
One such relief is the exemption for properties that are undergoing repair or structural alterations. Owners of empty listed buildings that are in need of repairs or renovations can apply for an exemption from business rates for a period of 12 months. This relief can provide owners with some breathing room as they work to bring their properties back into use.
There are also exemptions available for listed buildings that are owned by charities or community amateur sports clubs. These organizations may be eligible for 80% relief from business rates on their properties, regardless of whether they are occupied or empty. This relief can provide much-needed financial support for organizations that are dedicated to preserving and maintaining historic buildings.
In addition to exemptions, there are also reliefs available for listed buildings that are unable to be occupied due to factors beyond the owner’s control. For example, if a listed building is deemed unfit for occupation due to structural issues or safety concerns, the owner may be eligible for relief from business rates. This can help alleviate the financial burden of owning an empty listed building while the necessary repairs are carried out.
It is worth noting that owners of listed buildings must apply for these exemptions and reliefs through their local council. Each case is assessed on its own merits, and owners may need to provide evidence to support their application. It is important for owners to be diligent in their applications and to keep detailed records of any repairs or renovations that are being carried out on their properties.
While navigating business rates on empty listed buildings can be daunting, it is important for owners to explore all available options for relief. By taking advantage of exemptions and reliefs, owners can alleviate some of the financial burden associated with owning an empty listed building.
In conclusion, business rates on empty listed buildings can be a significant financial burden for owners. However, there are exemptions and reliefs available that can help alleviate this burden. Owners of empty listed buildings should explore all available options for relief and work closely with their local council to ensure that they are taking full advantage of any exemptions that may be available to them. By doing so, owners can help preserve and maintain these historic buildings for future generations to enjoy.