Business rates are taxes that are levied on non-residential properties in the UK, including shops, offices, warehouses, and factories. These taxes help fund services provided by local authorities, such as street cleaning, education, and public transportation. However, when it comes to listed buildings, the rules surrounding business rates can be a bit more complex.
Listed buildings are those that are considered to have special architectural or historic interest and are therefore protected from alterations or demolition without special permission. There are three grades of listing in the UK – Grade I, Grade II*, and Grade II. Grade I buildings are of exceptional interest, Grade II* are particularly important buildings of more than special interest, and Grade II are of special interest.
When it comes to business rates on listed buildings, the general rule is that they are still payable, just like they would be for any other non-residential property. However, there are certain exemptions and reliefs available for listed buildings that can help reduce the amount payable.
One of the main exemptions for listed buildings is the mandatory relief for certain types of properties. This relief is given to buildings that are used for charitable purposes, as places of public religious worship, or as property of a community amateur sports club. In these cases, the property would be exempt from paying business rates.
Another common relief for listed buildings is the small business rate relief. This relief is available to businesses that only use one property and their rateable value is below a certain threshold. For listed buildings that are used by small businesses, this relief can help reduce the amount of business rates payable.
In some cases, local authorities may also grant discretionary relief for listed buildings if they are of particular historical or architectural significance. This relief is not guaranteed and will depend on the individual circumstances of the property and the local authority’s policies.
It’s important to note that even if a listed building is vacant, business rates may still be payable. However, there are certain exemptions available for vacant properties that can help reduce the amount payable. For example, listed buildings that are undergoing major repair work or structural alterations may be eligible for empty property relief, which can provide a 100% reduction in business rates for a specified period.
When it comes to listed buildings that are used for business purposes, such as shops, offices, or restaurants, the rateable value of the property is calculated based on its rental value. However, listed buildings can often have restrictions on what alterations can be made to the property, which can affect its rental value. In these cases, the rateable value may be lower than it would be for a non-listed building, which can help reduce the amount of business rates payable.
Overall, business rates on listed buildings can be complex and there are various exemptions and reliefs available that can help reduce the amount payable. It’s important for owners of listed buildings to be aware of these exemptions and take advantage of them to ensure they are not paying more than they should be. Working closely with a local authority or a professional advisor can help ensure that listed buildings are receiving the appropriate level of relief when it comes to business rates.
In conclusion, understanding business rates on listed buildings is crucial for owners of these unique properties. By taking advantage of the available exemptions and reliefs, owners can help reduce the amount of business rates payable and ensure that their listed building is properly protected and maintained for future generations.