When it comes to owning a listed building, there are many factors that can influence the costs associated with maintaining and operating the property. One of the significant expenses that property owners need to be aware of is business rates on empty listed buildings. These rates can have a significant impact on the financial viability of owning a listed building, and it is essential for owners to understand how they are calculated and what they can do to minimize their impact.
Business rates are taxes that are paid on non-domestic properties, including commercial properties, offices, and listed buildings that are not used for residential purposes. The amount of business rates that are due on a property is calculated based on the rateable value of the property, which is set by the Valuation Office Agency (VOA). The rateable value is an estimate of the annual rent that the property could fetch on the open market if it were rented out.
For listed buildings, the rateable value is often calculated based on the Historic England guidelines for assessing the value of heritage properties. These guidelines take into account the special architectural or historic interest of the building, as well as its condition and location. This means that the rateable value of a listed building is likely to be higher than that of a non-listed property of a similar size and location.
One of the main issues that property owners face when it comes to business rates on empty listed buildings is that they are still liable to pay rates on the property, even if it is not being used. This can be a significant financial burden for owners who are struggling to find a new use for the building or who are carrying out extensive renovations or repairs. However, there are some exemptions and reliefs available that can help to reduce the amount of rates that are due on empty listed buildings.
One of the most common exemptions that owners of empty listed buildings can apply for is the Empty Property Rate Relief. This relief provides a 100% discount on business rates for the first three months that a property is empty, followed by a 50% discount for the next three months. After this initial period, the property will be liable for the full rate unless the owner qualifies for another relief or exemption.
In addition to the Empty Property Rate Relief, there are also a number of other reliefs and exemptions that may be available to owners of empty listed buildings. For example, if the property is undergoing repairs or structural alterations, the owner may be able to apply for a Listed Building Exemption, which provides relief from rates for a specified period of time. Owners may also be able to apply for hardship relief if they can demonstrate that paying the full rate would cause them financial hardship.
It is important for owners of empty listed buildings to be aware of the different reliefs and exemptions that are available to them and to take advantage of these where possible. By doing so, they can help to reduce the financial burden of business rates on their property and make it more financially viable to own and maintain a listed building.
In conclusion, business rates on empty listed buildings can be a significant expense for property owners, but there are ways to minimize their impact. By understanding how rates are calculated and what reliefs and exemptions are available, owners can reduce the financial burden of owning a listed building and make it more feasible to preserve and maintain these important pieces of our heritage.