When it comes to owning a listed building, there are many regulations and rules that must be followed. One of the key considerations for owners of listed buildings is the payment of business rates on empty properties. In the UK, business rates are taxes that businesses are required to pay on non-residential properties – including empty buildings. However, when it comes to listed buildings, there are certain exemptions and rules that owners need to be aware of in order to navigate the complex world of business rates.
Listed buildings are those that are considered to have special architectural or historic interest. These buildings are protected by law, with the aim of preserving their original features and character for future generations. While owning a listed building can be a great investment and a privilege, it also comes with its own set of challenges – one of which is the payment of business rates on empty properties.
In the UK, business rates are charged on most non-domestic properties, regardless of whether they are being used or left empty. This includes listed buildings, which are not exempt from business rates. However, there are certain exemptions and reliefs that owners of listed buildings can apply for in order to reduce or eliminate the business rates payable on empty properties.
One of the key reliefs available to owners of empty listed buildings is the “Empty Property Rate Relief”. This relief allows owners of empty properties to claim a discount on their business rates for a certain period of time. In the case of empty listed buildings, owners can claim a 100% relief on their business rates for as long as the property remains empty. This can provide significant financial savings for owners of listed buildings who are unable to find tenants or are carrying out renovation works.
It is important to note that in order to qualify for Empty Property Rate Relief on a listed building, the property must be included on the National Heritage List for England, also known as the “Listed Building” list. Owners will also need to provide evidence to the local council that the property is undergoing renovation works or is not suitable for occupation in its current state.
Another important consideration for owners of empty listed buildings is the impact of repairs and maintenance on business rates. While carrying out repairs and maintenance on a listed building is essential for preserving its historic features and preventing deterioration, it can also have an impact on business rates. In some cases, owners may be eligible for relief on their business rates if the property is undergoing repair works or is not suitable for occupation due to the renovation works being carried out.
In addition to Empty Property Rate Relief, owners of listed buildings may also be eligible for other forms of relief on their business rates. For example, owners of buildings used for charitable purposes, or those that are considered to have a community benefit, may be eligible for relief on their business rates. Local councils have the discretion to provide relief on a case-by-case basis, so it is important for owners to research and understand the options available to them.
One of the challenges faced by owners of empty listed buildings is the uncertainty around the future use of the property. Listed buildings often require specialist knowledge and skills to restore and maintain, which can make finding tenants or buyers a challenging task. This uncertainty can make it difficult for owners to plan for the payment of business rates on empty properties, especially if the property remains empty for an extended period of time.
In conclusion, owning a listed building comes with its own set of challenges, one of which is navigating the payment of business rates on empty properties. While listed buildings are not exempt from business rates, owners can apply for Empty Property Rate Relief and other forms of relief to reduce or eliminate the taxes payable on empty properties. By understanding the rules and regulations around business rates on empty listed buildings, owners can better manage their finances and preserve these historic properties for future generations.