Owning a listed building can be a unique and rewarding experience for property owners. These historic structures often come with a sense of heritage and character that is difficult to replicate in modern buildings. However, one of the challenges that comes with owning a listed building is the issue of business rates on empty listed buildings.
Business rates are a tax that is charged on most non-domestic properties, including commercial buildings and empty properties. The amount that property owners have to pay in business rates is determined by the rateable value of the property, as assessed by the Valuation Office Agency (VOA). However, when it comes to listed buildings, the rules surrounding business rates can be particularly complex.
Listed buildings are protected by law because of their historic or architectural significance. Therefore, any alterations or changes to these buildings must be approved by the local planning authority. This can make it difficult for property owners to find tenants for their empty listed buildings, as potential tenants may be put off by the restrictions imposed by the listing status.
When a listed building is empty, property owners are still required to pay business rates on the property, even if it is not generating any income. This can place a significant financial burden on property owners, especially if they are struggling to find a tenant for the building. In some cases, property owners may be forced to pay business rates on an empty listed building for several years before they are able to find a suitable tenant.
One of the main reasons for this is that the VOA assesses the rateable value of a property based on its rental value if it were in a state of reasonable repair and able to be let on the open market. This means that even if a listed building is empty and in need of significant renovations, property owners are still required to pay business rates based on the potential rental value of the property.
There are some exemptions and reliefs available to property owners of empty listed buildings when it comes to business rates. For example, if a listed building is undergoing major repair works or structural alterations, property owners may be able to apply for a listed building exemption, which provides a 100% relief on business rates for a certain period of time. This can provide much-needed financial relief to property owners who are investing in the restoration and preservation of their listed buildings.
Another option for property owners of empty listed buildings is to apply for a hardship relief scheme. This scheme is designed to provide temporary relief to property owners who are experiencing financial difficulties and are struggling to pay their business rates. Property owners must demonstrate that they are facing financial hardship and provide evidence of the steps they have taken to try and alleviate the situation, such as actively marketing the property for rent.
Despite these exemptions and reliefs, navigating the complex world of business rates on empty listed buildings can still be a challenging and confusing process for property owners. The rules and regulations surrounding business rates are constantly changing, and property owners may find it difficult to keep up with the latest developments in this area.
In recent years, there has been a growing call for a review of the business rates system in the UK, particularly in relation to empty properties. Property owners argue that the current system penalizes them for investing in and preserving historic buildings, and that the rules surrounding business rates on empty listed buildings are unfair and unjust.
In conclusion, business rates on empty listed buildings can be a significant financial burden for property owners. The rules and regulations surrounding business rates are complex and constantly changing, making it difficult for property owners to navigate this area. While there are exemptions and reliefs available, property owners may still find themselves struggling to pay their business rates on empty listed buildings. Ultimately, there is a need for a reassessment of the business rates system in the UK to ensure that it is fair and equitable for all property owners, including those who own empty listed buildings.