Business rates are taxes that are paid by owners or occupiers of non-domestic properties such as shops, offices, and warehouses. These rates are set by the government and are based on the rateable value of the property, which is determined by the property’s rental value. However, when it comes to empty listed buildings, the rules around business rates can become particularly complex and confusing.
Listed buildings are those that are of special architectural or historic interest and are granted protected status by the government. These buildings are often considered to be of national importance and are protected from alterations or demolition. While this protection is important for preserving our cultural heritage, it can also present challenges for owners of empty listed buildings when it comes to business rates.
One of the key issues that owners of empty listed buildings face is the payment of business rates on these properties. In most cases, owners of non-domestic properties are required to pay business rates whether the property is occupied or not. This means that even if a listed building is vacant, the owner is still liable to pay business rates on the property.
This can present a significant financial burden for owners of empty listed buildings, particularly if they are struggling to find a new occupant for the property. Paying business rates on a vacant property can quickly add up, especially if the property has a high rateable value. This can make it difficult for owners to invest in the necessary repairs and maintenance needed to bring the building back into use.
In recognition of these challenges, the government introduced a temporary relief scheme for empty listed buildings in England in 2016. This relief scheme provides a 100% discount on business rates for the first three months that a listed building is empty, followed by a 50% discount for the next three months. After six months, the property will be liable for full business rates.
While this relief scheme provides some respite for owners of empty listed buildings, it is important to note that the rules around business rates on these properties can vary depending on the local authority. Some local authorities may offer additional relief schemes for empty listed buildings, so it is worth checking with your local council to see what support may be available.
Owners of empty listed buildings may also be eligible for exemptions from business rates under certain circumstances. For example, if a property is undergoing major repair works or structural alterations, owners may be able to apply for a temporary exemption from business rates. This can provide valuable financial support for owners who are investing in the restoration of a listed building.
It is important for owners of empty listed buildings to stay informed about the rules and regulations surrounding business rates. Failure to pay business rates on a listed building can result in penalties and enforcement action from the local authority. By understanding your obligations and exploring the potential relief schemes and exemptions available, you can better navigate the complexities of business rates on empty listed buildings.
In conclusion, business rates on empty listed buildings can present a significant challenge for owners, particularly when it comes to the financial burden of paying rates on a vacant property. However, with the right information and support, owners of empty listed buildings can navigate these complexities and access relief schemes and exemptions that may help alleviate the financial strain. Investing in the preservation and restoration of our historic buildings is important, and by understanding the rules around business rates, owners can continue to protect and maintain these valuable assets for future generations.