Business rates are a tax that is levied on most non-domestic properties in the UK, including commercial buildings, shops, offices, and warehouses. However, when it comes to listed buildings, there are some unique considerations that must be taken into account. Listed buildings are protected by law due to their historical or architectural significance, and as such, they are subject to special rules when it comes to business rates.
One important issue that owners of empty listed buildings must contend with is the liability for business rates on their property. In general, if a building is empty, the owner is still required to pay business rates on it. This is true for both listed and non-listed buildings. However, there are some differences in how the rates are calculated for listed buildings.
The rules surrounding business rates on empty listed buildings can be complex and confusing, so it is important for owners to understand their obligations and how they are calculated. In this article, we will explore the impact of business rates on empty listed buildings and what owners can do to manage this financial burden.
Listed buildings are often subject to higher maintenance costs and restrictions on alterations, which can make them more difficult to rent out or sell. This means that owners of listed buildings are more likely to have empty properties, either temporarily or for extended periods of time. Despite this, they are still required to pay business rates on these empty buildings.
One way in which the rules for business rates on empty listed buildings differ from non-listed buildings is in the length of time for which the rates are waived. In England, owners of non-listed buildings are granted a three-month exemption from paying business rates on empty property, after which they must pay the full amount. However, owners of listed buildings are granted a 100% exemption from business rates for as long as the property remains empty.
While this exemption can provide some relief for owners of empty listed buildings, it is important to note that it is not automatic. Owners must apply to the local council for this exemption, and they must provide evidence to demonstrate that the property is indeed empty. This can include photographs, utility bills, and other relevant information.
In addition to the exemption for empty listed buildings, owners may also be eligible for a discount on their business rates if they are carrying out repairs or renovations on the property. This is known as a section 47 relief, and it can provide a 50% discount on business rates for up to 12 months. This can help to offset some of the costs associated with owning and maintaining a listed building.
Despite these exemptions and discounts, the impact of business rates on empty listed buildings can still be significant. In some cases, owners may find themselves facing steep bills for properties that are not generating any income. This can put a strain on finances and make it difficult to invest in the upkeep and preservation of the building.
One option for owners of empty listed buildings is to consider applying for charitable relief from business rates. This relief is available to owners of listed buildings that are used for charitable purposes, such as museums, galleries, or community centers. Owners must apply to the local council for this relief, and they must demonstrate that the building is being used for a charitable purpose in order to qualify.
Another option for owners struggling with business rates on empty listed buildings is to explore the possibility of temporary uses for the property. This could include renting out the space for events, pop-up shops, or temporary exhibitions. While this may not provide a long-term solution, it can help to generate some income and offset the costs of owning an empty building.
In conclusion, business rates on empty listed buildings can be a significant financial burden for owners. However, there are exemptions, discounts, and relief options available that can help to mitigate this burden. By understanding their obligations and exploring all available options, owners can better manage the impact of business rates on their empty listed buildings.