Empty listed buildings hold a special place in our history and culture, often serving as reminders of the past and adding character to our towns and cities. However, when these buildings sit vacant, they can become a burden on their owners due to business rates. In this article, we will explore the complexities of business rates on empty listed buildings and provide guidance on how to navigate these challenges.
Listed buildings are structures that are recognized for their historical or architectural significance and are protected by law from being altered or demolished without permission. These buildings are often considered to be valuable assets in our society, preserving our heritage and contributing to the unique character of our communities. However, when listed buildings sit empty, they can become a financial liability for their owners.
Business rates are a tax paid on non-domestic properties in the UK, including commercial buildings, shops, and offices. The amount of business rates owed is based on the rateable value of the property, which is assessed by the Valuation Office Agency (VOA). Business rates are used to fund local services such as schools, roads, and waste collection, and are an important source of revenue for local authorities.
Owners of empty listed buildings are still required to pay business rates, even if the property is not generating any income. This can be a significant financial burden for property owners, especially if the building requires costly repairs or maintenance. In some cases, the business rates on an empty listed building can be higher than those on a fully occupied commercial property, making it difficult for owners to afford the ongoing costs.
There are, however, some exemptions and reliefs available for owners of empty listed buildings. The most common exemption is the 100% relief for properties with a rateable value of less than £2,900. This means that owners of empty listed buildings with a rateable value below this threshold do not have to pay any business rates. Additionally, buildings that are undergoing major repair or structural alterations may be eligible for a 100% relief for up to 12 months.
Owners of empty listed buildings can also apply for listed building consent to temporarily reduce their business rates. This process involves demonstrating to the local council that the building is genuinely vacant and that efforts are being made to bring it back into use. If approved, the property owner may be granted a temporary reduction in business rates for a specified period of time.
Another option for owners of empty listed buildings is to seek a change in the designated use of the property. By applying for a change of use from commercial to residential, for example, the property may become eligible for a different rate or relief scheme. This can help to reduce the financial burden of business rates on the property owner and may also present new opportunities for the building’s future use.
In addition to these exemptions and reliefs, owners of empty listed buildings should also consider applying for discretionary rate relief from their local council. This relief is granted on a case-by-case basis and is usually intended to support businesses that are facing financial hardship. By making a strong case for relief, property owners may be able to secure a reduction in their business rates or a payment plan to spread out the costs.
Navigating the complexities of business rates on empty listed buildings can be challenging, but with the right information and guidance, property owners can take steps to mitigate the financial impact. By exploring the available exemptions, reliefs, and relief schemes, owners of empty listed buildings can find ways to reduce their business rates and alleviate the burden of owning a vacant property.
In conclusion, business rates on empty listed buildings can be a significant financial burden for property owners, but there are options available to help alleviate this strain. By exploring exemptions, reliefs, and relief schemes, owners of empty listed buildings can navigate the complexities of business rates and find solutions to reduce their tax liability. With careful planning and strategic decision-making, property owners can ensure that their empty listed buildings remain valuable assets to our society while minimizing the financial costs associated with their upkeep.