When it comes to owning a listed building, there are several factors that need to be considered, with one of the most important being business rates. business rates on listed buildings can have a significant impact on owners and tenants, so it’s essential to understand how they work and what can be done to mitigate their effects.
Listed buildings are properties that have been deemed to have special architectural or historic interest and are therefore protected by law. This means that any changes or alterations to the building must be approved by the local planning authority to ensure that the character and significance of the building are preserved.
One of the consequences of owning a listed building is that business rates can often be higher compared to non-listed properties. This is because listed buildings are often larger and more valuable than their non-listed counterparts, which means that their rateable value – the basis for calculating business rates – is higher.
Business rates are a tax on non-domestic properties that are used for commercial purposes. They are calculated based on the rateable value of the property, which is determined by the valuation office agency. The rateable value is updated every five years to reflect changes in the property market.
For listed buildings, the rateable value takes into account the special architectural or historic interest of the property, which can result in a higher rateable value compared to a non-listed property of the same size and location. This means that owners of listed buildings may face higher business rates bills, which can put a strain on their finances.
There are, however, some ways in which owners of listed buildings can reduce their business rates liabilities. One option is to apply for listed building consent to carry out repairs, renovations, or alterations to the property that could improve its rateable value. By doing so, owners may be able to increase the property’s rental potential or sale value, which could offset the higher business rates bills.
Another way to reduce business rates on listed buildings is to apply for business rates relief or exemption. There are several schemes available to owners of listed buildings that can help reduce their business rates bills. For example, owners of Grade I or Grade II* listed buildings may be eligible for 100% business rates relief, while owners of Grade II listed buildings may be eligible for 50% relief.
It’s important for owners of listed buildings to be aware of the various schemes and reliefs available to them, as they can make a significant difference to their bottom line. By taking advantage of these schemes, owners can reduce their business rates liabilities and ensure that they are able to continue to maintain and preserve their listed buildings for future generations.
In conclusion, business rates on listed buildings can be a significant financial burden for owners and tenants. However, there are ways in which this burden can be mitigated, such as by applying for listed building consent, carrying out renovations or repairs to improve the property’s rateable value, or applying for business rates relief or exemption.
Owners of listed buildings should be proactive in exploring these options and working with their local planning authority to ensure that they are able to effectively manage their business rates liabilities. By doing so, owners can continue to preserve and protect their listed buildings for future generations to enjoy.