When it comes to owning a listed building, there are a myriad of rules and regulations that must be followed. From preservation guidelines to maintenance standards, the responsibilities that come with owning a historic property can be overwhelming. One such obligation that owners of listed buildings must be aware of is the payment of business rates on empty properties.
Listed buildings are often seen as a burden by their owners, as they require significant investment to maintain and renovate. However, the government recognizes the importance of preserving these historic structures, and as such, offers certain tax breaks and incentives to help owners offset the costs associated with their upkeep. One such incentive is a discount on business rates for properties that are empty and have been deemed as listed buildings.
Business rates, often referred to as non-domestic rates, are a type of tax that is charged on most non-residential properties, including shops, offices, warehouses, and factories. The amount of business rates that an owner is required to pay is based on the rateable value of the property, which is assessed by the Valuation Office Agency (VOA) every five years. However, if a property is empty, the rules regarding business rates change.
Under normal circumstances, owners of empty commercial properties are required to pay full business rates after the property has been empty for a certain period of time. This is known as the empty property rate. However, properties that are listed buildings are eligible for a discount on their business rates. Listed buildings are divided into two categories: Grade I and Grade II. Grade I listed buildings are deemed to be of exceptional interest, while Grade II listed buildings are of special interest. Both types of listed buildings are eligible for a discount on their business rates if they are empty.
The exact discount that owners of empty listed buildings can receive on their business rates varies depending on the local authority in which the property is located. Some local authorities offer a 100% discount on business rates for the first three or six months that a property is empty, while others may offer a discount for a longer period of time. Owners of Grade I and Grade II listed buildings should contact their local authority to find out what discounts they may be eligible for.
It is important to note that in order to qualify for a discount on business rates, the property must be listed on the National Heritage List for England, maintained by Historic England. If a property is listed locally, but not nationally, it may not be eligible for a discount on business rates. Additionally, owners must be able to prove that the property is genuinely empty in order to qualify for a discount. This means that the property cannot be used for any business purposes, even if it is only being used for storage or as a temporary office space.
In some cases, owners of empty listed buildings may be exempt from paying business rates altogether. For example, if a property is undergoing major repair or structural alterations, it may be eligible for an exemption from business rates. Owners should contact their local authority to find out if their property qualifies for an exemption based on its current use.
While the discounts and exemptions offered on business rates for empty listed buildings can provide owners with some financial relief, it is important to remember that these incentives are designed to encourage the preservation and restoration of historic buildings. Owners of listed buildings have a responsibility to maintain their properties to a high standard, and failure to do so can result in penalties and fines. It is essential that owners of listed buildings work closely with their local authority and follow all guidelines and regulations to ensure the long-term preservation of these important historical assets.
In conclusion, navigating the rules and regulations surrounding business rates on empty listed buildings can be a complex process. Owners of Grade I and Grade II listed buildings should be aware of the discounts and exemptions that they may be eligible for, and work closely with their local authority to ensure that they are in compliance with all regulations. By taking advantage of the incentives offered for empty listed buildings, owners can help to preserve these important historical structures for future generations to enjoy.