Empty listed buildings are a common sight in many towns and cities across the UK. These buildings, which are often of historical or architectural significance, stand empty for various reasons, including lack of investment, maintenance costs, and legal restrictions. One of the key challenges faced by owners of empty listed buildings is the payment of business rates, which can be a significant financial burden. In this article, we will explore the impact of business rates on empty listed buildings and how owners can navigate this challenge.
Listed buildings are subject to special legal protections aimed at preserving their historical and architectural significance. These buildings are listed on the National Heritage List for England and are classified into three categories: Grade I, Grade II*, and Grade II. Owners of listed buildings are legally required to maintain and preserve the building’s historic character and appearance, which can be costly and time-consuming.
One of the challenges faced by owners of empty listed buildings is the payment of business rates. Business rates are a tax levied by local authorities on non-domestic properties, including commercial properties, empty properties, and listed buildings. Business rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA).
For empty listed buildings, business rates can be a significant financial burden. Under current legislation, owners of empty commercial properties are entitled to a three-month exemption from business rates. However, listed buildings are exempted from this exemption, meaning that owners of empty listed buildings must pay full business rates from day one of the building becoming empty.
The requirement to pay business rates on empty listed buildings can discourage owners from investing in the property or carrying out necessary maintenance works. This can lead to a decline in the condition of the building, further exacerbating the financial burden on the owner and potentially jeopardizing the building’s historic significance.
One way in which owners of empty listed buildings can mitigate the impact of business rates is to seek relief or exemptions. Owners of listed buildings may be eligible for a 100% discount on business rates if the building is undergoing major repair or structural alterations. This relief is known as the empty property relief for industrial buildings or the mandatory rate relief for charitable or non-profit organizations.
Owners of empty listed buildings may also be eligible for discretionary rate relief, which is granted at the discretion of the local authority. Discretionary rate relief is typically awarded in cases where the empty building is of historical significance or where the owner can demonstrate that paying full business rates would cause financial hardship.
In addition to seeking relief or exemptions, owners of empty listed buildings can explore alternative uses for the property to generate income and offset the cost of business rates. For example, owners can consider leasing the property for events, exhibitions, or filming locations. By generating income from the property, owners can help cover the cost of business rates and contribute to the preservation of the building’s historic significance.
It is important for owners of empty listed buildings to be proactive in managing their business rates and exploring all available options for relief and exemptions. By understanding the impact of business rates and taking proactive steps to mitigate this financial burden, owners can ensure the long-term preservation of these important historical and architectural assets.
In conclusion, the payment of business rates on empty listed buildings can be a significant financial burden for owners. However, by seeking relief or exemptions, exploring alternative uses for the property, and taking proactive steps to manage their business rates, owners can navigate this challenge and contribute to the preservation of these important historical and architectural assets.