Business rates can be a substantial cost for many business owners, and when it comes to listed buildings, understanding the rules and regulations surrounding business rates can be even more complex. Listed buildings are those that are considered to have special architectural or historic interest, and as such, they are subject to different rules and regulations than non-listed buildings. In this article, we will explore the specifics of business rates on listed buildings, including how they are calculated and what options are available to business owners.
Listed buildings are divided into three categories – Grade I, Grade II*, and Grade II – with Grade I being the highest level of listing. The listing of a building means that its character and special interest have been officially recognized, and as a result, it is subject to strict regulations to preserve its historic or architectural significance. However, this can also have implications for the business rates that are payable on the property.
One of the key factors that can impact business rates on listed buildings is the rateable value of the property. The rateable value is based on an assessment of the rental value of the property at a specific point in time, and it is used to determine how much business rates are due. In the case of listed buildings, the rateable value may be affected by factors such as the age, condition, and special architectural or historic interest of the building. This means that the rateable value of a listed building may be higher or lower than that of a non-listed building of a similar size and location.
In addition to the rateable value, there are also specific reliefs and exemptions that may be available to business owners of listed buildings. For example, if a building is unoccupied and being actively marketed for sale or rent, the owner may be able to apply for an exemption from paying business rates for a limited period of time. This can provide significant financial relief for business owners who are struggling to find a tenant for their listed building.
Another option that may be available to business owners of listed buildings is to apply for listed building relief. This relief is available to buildings that are either listed as Grade I or Grade II*, and it can provide a discount of up to 100% on business rates. This can be a significant cost-saving measure for business owners, particularly those who are operating in listed buildings with a high rateable value.
It is important to note that listed building relief is not automatically granted, and business owners will need to apply to their local council for consideration. The council will assess the application on a case-by-case basis, taking into account factors such as the special interest of the building, the economic viability of the business, and the impact that paying business rates would have on the business owner. While there are no guarantees that relief will be granted, it is certainly worth exploring this option for business owners of listed buildings.
Another key consideration for business owners of listed buildings is the impact of any alterations or renovations that may be carried out on the property. Listed buildings are subject to strict regulations when it comes to making changes to the building, and any alterations that are made without the proper permissions can result in fines or other penalties. In some cases, carrying out renovations on a listed building can also impact the rateable value of the property, potentially increasing the amount of business rates that are due.
In conclusion, business rates on listed buildings can be a complex and costly issue for business owners to navigate. However, by understanding the rules and regulations surrounding business rates, as well as the options that may be available for relief or exemptions, business owners can better manage this aspect of their financial responsibilities. Whether it be applying for listed building relief, exploring exemptions for unoccupied properties, or seeking advice on the impact of renovations, business owners of listed buildings can take proactive steps to mitigate the impact of business rates on their operations.