When it comes to owning and managing commercial property, there are many factors to consider. One important aspect that often gets overlooked is the issue of business rates on empty listed buildings. Understanding how these rates are calculated and what exemptions may be available can help property owners navigate this complex system and make informed decisions about their investments.
Listed buildings are properties that have been designated as historically or architecturally significant and are protected by law. This means that any alterations or renovations to these buildings must be done in accordance with strict guidelines to preserve their historical value. While owning a listed building can be a great investment and add to the character of a neighborhood, it can also come with additional costs and regulations, such as business rates.
Business rates are a tax that is applied to most non-domestic properties, including listed buildings. These rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). The rateable value is an estimate of the property’s rental value on a specific date, usually every five years. The business rates are then calculated by multiplying the rateable value by the business rates multiplier, which is set annually by the government.
One of the main concerns for owners of listed buildings is that they are often subject to higher business rates due to their historical significance and uniqueness. This can make it challenging for property owners to attract tenants or generate income from their properties, especially if they are struggling to find the right tenant or are facing long periods of vacancy.
However, there are some exemptions and reliefs available for business rates on empty listed buildings that property owners should be aware of. One of the most common reliefs is the empty property relief, which allows property owners to claim a full exemption from business rates for up to three months after a property becomes vacant. After the initial three months, the property owner may be eligible for a 50% discount on the business rates for the next three months, and then the full rate will apply.
In addition to empty property relief, there are also exemptions available for listed buildings that are undergoing renovation or repair work. Property owners can apply for a listed building consent exemption, which allows them to claim full relief from business rates for up to a year while the property is undergoing approved renovation works. This can provide much-needed financial relief for property owners who are investing in the preservation and restoration of their listed buildings.
It is important for property owners to be aware of these exemptions and reliefs and to take advantage of them whenever possible. By understanding the complexities of business rates on empty listed buildings and planning accordingly, property owners can minimize their financial burden and make their investments more financially viable in the long run.
In addition to exemptions and reliefs, property owners can also explore other options for mitigating the impact of business rates on their empty listed buildings. For example, they can consider negotiating a reduced rate with the local council based on the property’s unique circumstances or seeking professional advice from a chartered surveyor or tax specialist to help them navigate the complex rules and regulations surrounding business rates.
Overall, navigating business rates on empty listed buildings can be a complex and challenging process, but with the right knowledge and resources, property owners can make informed decisions that will benefit their investments in the long term. By understanding the exemptions and reliefs available, exploring other options for reducing business rates, and seeking professional advice when needed, property owners can ensure that their empty listed buildings remain financially viable assets and contribute to the preservation of our architectural heritage.