When it comes to owning a listed building, whether it be for residential or commercial use, there are a number of factors that need to be considered. One of the most significant factors that can often catch property owners off guard is the issue of business rates on empty listed buildings.
Listed buildings, which are designated as such for their historical or architectural significance, come with certain responsibilities and restrictions that must be adhered to by the owners. One of these responsibilities is the payment of business rates, even if the building is standing vacant. This can often come as a surprise to property owners who may have assumed that a vacant listed building would be exempt from such charges.
So, what exactly are business rates and why are they applied to empty listed buildings? Business rates are a tax on non-domestic properties in the UK, charged by local authorities to help fund local services. The rates are based on the rateable value of the property, which is assessed by the Valuation Office Agency (VOA) and reviewed every five years. For listed buildings, the rateable value takes into account not only the size and condition of the property, but also its historical and architectural significance.
The reason why business rates are applied to empty listed buildings is to deter property owners from leaving such buildings vacant for extended periods of time. Listed buildings are an important part of our cultural heritage and it is in the public interest to ensure that they are properly maintained and brought back into use. By charging business rates on empty listed buildings, local authorities are encouraging owners to find a suitable use for the property or to carry out necessary repairs to bring it back into use.
However, there are certain exemptions and reliefs available for owners of empty listed buildings. One of these is the empty property rate relief, which allows owners of empty non-domestic properties to claim a partial or full exemption from business rates for a limited period of time. This relief is designed to provide some financial support to property owners who are actively seeking to bring their empty buildings back into use.
In the case of empty listed buildings, owners can apply for a 100% exemption from business rates for the first three months that the property is vacant. After this initial period, owners may be able to claim a 50% exemption for a further three months, depending on the local authority’s policies. Beyond this six-month period, owners of empty listed buildings are generally liable to pay the full business rates unless they are able to qualify for other reliefs or exemptions.
It is worth noting that the rules and regulations surrounding business rates on empty listed buildings can vary depending on the specific circumstances and local authority policies. Property owners are advised to consult with their local authority and seek professional advice to understand their obligations and explore potential avenues for relief.
In addition to the financial implications, there are also legal considerations that property owners must be aware of when it comes to empty listed buildings. Failing to pay business rates on an empty listed building can result in legal action being taken by the local authority, including the possibility of court proceedings and enforcement action. It is therefore crucial for property owners to stay up to date with their obligations and seek advice if they are struggling to meet them.
In conclusion, business rates on empty listed buildings are an important issue that property owners must be aware of when it comes to managing their properties. While the charges may come as a surprise to some, they are a necessary measure to ensure that our listed buildings are properly maintained and brought back into use. By understanding the rules and regulations surrounding business rates, property owners can avoid potential pitfalls and ensure that their empty listed buildings are compliant with the law.