Listed buildings are an important part of our cultural heritage, and they often play a significant role in the history of a place. However, owning and operating a listed building comes with its own set of challenges, one of which is dealing with business rates. Business rates are a tax on non-residential properties in the UK, and they can be quite a burden for owners of listed buildings. In this article, we will explore the ins and outs of business rates on listed buildings and offer some tips on how to navigate this complex issue.
business rates on listed buildings can be a particularly thorny issue because these properties are often older and require more maintenance and upkeep than newer buildings. This means that the rateable value of a listed building can be higher, leading to increased business rates. However, there are some exemptions and reliefs available to owners of listed buildings that can help alleviate the financial burden.
One of the key exemptions available to owners of listed buildings is the listed building exemption. This exemption applies to buildings that are on the statutory list of buildings of special architectural or historic interest. If a building is listed, it will be exempt from business rates altogether. This exemption is put in place to recognize the value of preserving our heritage and to help offset the costs associated with maintaining a listed building.
However, not all listed buildings are automatically exempt from business rates. Some listed buildings are still subject to rates, but there are some reliefs available that can help reduce the amount owed. One such relief is the small business rate relief, which offers a discount on business rates for properties with a rateable value below a certain threshold. This relief is particularly useful for small businesses operating in listed buildings, as it can help make the tax burden more manageable.
Another relief that may be available to owners of listed buildings is the charitable rate relief. This relief is available to charities and non-profit organizations that occupy listed buildings for charitable purposes. Charities can apply for up to 80% relief on their business rates, which can make a significant difference in the amount owed. It is important for charities to take advantage of this relief if they qualify, as it can help free up funds for their charitable activities.
In addition to exemptions and reliefs, owners of listed buildings can also take steps to reduce their business rates bill through other means. One option is to appeal the rateable value of the property if they believe it has been set too high. Property owners can submit an appeal to the Valuation Office Agency, which will reassess the rateable value and make any necessary adjustments. This can be a lengthy and sometimes complex process, but it can result in a lower business rates bill in the long run.
Owners of listed buildings can also look into other ways to reduce their business rates bill, such as by making energy efficiency improvements to the property. Buildings that are more energy-efficient are eligible for a discount on their business rates under the government’s energy performance certificate scheme. By making upgrades to the building, owners can not only reduce their environmental impact but also save money on their business rates bill.
In conclusion, business rates on listed buildings can be a significant financial burden for owners, but there are exemptions, reliefs, and other strategies available to help alleviate the costs. Owners of listed buildings should familiarize themselves with the options available to them and take proactive steps to reduce their business rates bill. By doing so, they can continue to preserve our cultural heritage while also managing the financial aspects of owning and operating a listed building.