Empty listed buildings hold a special place in our history and are often considered architectural gems that need to be preserved for future generations. However, the reality is that owning a listed building comes with its own set of challenges, one of which is the burden of business rates on these properties. In this article, we will explore the implications of business rates on empty listed buildings and how they affect property owners.
Listed buildings are structures that have been designated as being of special architectural or historic interest by the government. These buildings are protected by law, meaning that any alterations or changes to the structure must be approved by the local planning authority. While owning a listed building can be a source of pride for many property owners, it also comes with a number of restrictions and responsibilities, one of which is the payment of business rates.
Business rates are taxes that are levied on non-domestic properties, including commercial buildings, shops, and offices. The rates are calculated based on the rateable value of the property, which is determined by the government’s Valuation Office Agency. In the case of listed buildings, the rateable value is often significantly higher than that of a non-listed property due to their historic or architectural significance.
One of the biggest issues facing owners of empty listed buildings is the requirement to pay business rates on these properties. Unlike non-listed properties, where owners are exempt from paying rates for the first three months that a property is empty, listed buildings are not eligible for this relief. This means that owners of empty listed buildings are required to pay full business rates from day one of the property being vacant.
This poses a significant financial burden on property owners, as maintaining an empty listed building can be costly. Owners are often required to undertake regular maintenance and upkeep of the property to prevent deterioration and ensure that the building remains in good condition. In addition to this, owners may also incur additional costs such as insurance and security measures to protect the building from vandalism or theft.
The requirement to pay business rates on empty listed buildings can act as a deterrent for property owners who are considering purchasing or investing in such properties. The additional financial burden of paying rates on an empty building can make it difficult for owners to recoup their investment or generate a return on their property. This can result in listed buildings remaining vacant for extended periods of time, leading to a decline in the condition of the property and potentially putting it at risk of being lost or demolished.
In some cases, the burden of business rates on empty listed buildings has led to owners seeking alternative solutions to mitigate their costs. One common solution is to seek planning permission to convert the listed building into a different use that is exempt from business rates, such as residential accommodation. However, this can be a lengthy and costly process, as owners must navigate through a complex planning system and may face opposition from local authorities or conservation groups.
Another option for owners of empty listed buildings is to seek relief from business rates through the listed building exemption. This exemption allows owners of listed buildings that are undergoing renovation or repair works to apply for a temporary reduction or exemption from paying rates. However, this exemption is subject to strict criteria and is only available for a limited period of time, usually up to 12 months. Owners must demonstrate that they are actively engaged in carrying out works to preserve or restore the building in order to qualify for this relief.
Despite these challenges, it is important to recognize the value of preserving our historic and architectural heritage. Listed buildings provide a link to our past and help to tell the story of our communities and cities. By understanding the implications of business rates on empty listed buildings and exploring alternative solutions, we can ensure that these valuable assets are protected and maintained for future generations to enjoy.