When it comes to owning and maintaining a listed building, there are many challenges that property owners face. One of the most significant challenges is dealing with business rates on empty listed buildings. Business rates are a tax that is charged on non-domestic properties, including commercial buildings, and can be a significant financial burden for property owners. In the case of listed buildings, there are additional considerations and exemptions that come into play.
Listed buildings are properties that have been recognized for their historic or architectural significance and are protected by law from being demolished or altered without permission. The government recognizes the importance of preserving these buildings and offers various incentives and exemptions to property owners to encourage the preservation of listed buildings.
One of the exemptions available to owners of listed buildings is a 100% relief on business rates for up to two years on properties that are undergoing repair or structural alterations. This relief can offer significant financial savings for property owners who are investing in the restoration and preservation of their listed building. However, once the two-year period is up, property owners are required to pay full business rates on the property, regardless of whether it is occupied or empty.
This is where many property owners can run into financial difficulties. Business rates can be a significant expense for property owners, especially if the building is sitting empty and generating no income. The government has recognized this issue and has made some changes to the regulations surrounding business rates on empty listed buildings.
In 2017, the government introduced new legislation that allowed local authorities to increase the business rates on empty commercial properties, including empty listed buildings. The intention behind this change was to encourage property owners to bring empty buildings back into use and to prevent the hoarding of vacant properties. The new regulations allow local authorities to charge up to 100% of the full business rates on empty properties, with the rate increasing by 10% for each year that the property remains unoccupied.
While this change has the potential to put financial pressure on property owners, there are still some exemptions and relief schemes available to help ease the burden. Property owners can apply for a hardship relief scheme if they can demonstrate that they are experiencing financial difficulties as a result of the business rates on their empty listed building. This relief scheme can provide temporary financial assistance to property owners who are struggling to meet the business rates payments.
There are also other ways that property owners can minimize the impact of business rates on their empty listed buildings. For example, owners can consider leasing out the building to a community group or charity, as properties that are used for charitable purposes are eligible for an 80% relief on business rates. This can be a win-win situation for both the property owner and the charity, as the property owner can benefit from the relief on business rates while the charity benefits from having a space to use for their activities.
Another option for property owners is to apply for a revaluation of their property if they believe that the rateable value used to calculate their business rates is too high. This can be a complex process, but it can result in a reduction in the business rates that the property owner is required to pay.
In conclusion, business rates on empty listed buildings can be a significant financial burden for property owners, but there are ways to navigate this challenge. By taking advantage of the exemptions and relief schemes available, property owners can minimize the impact of business rates on their empty listed buildings and continue to preserve these important pieces of our architectural heritage.