When it comes to owning a listed building, there are many factors to consider, including the impact of business rates. Business rates are taxes that all non-domestic property owners must pay to their local council. This includes owners of listed buildings, which are properties that have been designated as having special architectural or historic importance. In this article, we will explore the key considerations of business rates on listed buildings and provide insight into how owners can effectively manage this aspect of property ownership.
Listed buildings are highly sought after for their unique character, charm, and historical significance. However, owning a listed property comes with its challenges, one of which is the payment of business rates. Business rates are calculated based on the rateable value of a property, which is determined by the Valuation Office Agency (VOA). The rateable value takes into account factors such as the size, location, and condition of the property.
For listed buildings, the rateable value is often higher than for non-listed properties due to their unique features and historical importance. This can result in higher business rates, which can put financial strain on the property owner. As a result, many owners of listed buildings may feel discouraged from investing in the maintenance and preservation of their property.
Despite the challenges, there are ways in which owners of listed buildings can effectively manage their business rates. One option is to apply for a heritage exemption. This exemption is available to properties that are listed on the National Heritage List for England and meet certain criteria set by Historic England. If approved, the property owner may be eligible for a discount or complete exemption from business rates.
Another option is to apply for a discretionary relief from the local council. Councils have the authority to grant relief on business rates for properties that have a special character or are of historical importance. Property owners can make a case for relief by demonstrating the unique features of their listed building and the challenges they face in maintaining it.
In addition to seeking exemptions and relief, property owners can take steps to reduce their business rates by investing in energy efficiency measures. By improving the energy performance of their building, owners may be eligible for a reduction in their rates through the government’s Energy Performance Certificate (EPC) scheme. This scheme aims to encourage property owners to make environmentally friendly improvements to their buildings.
Furthermore, property owners can consider leasing their listed building to a charity or social enterprise. Buildings occupied by charitable organizations are eligible for an 80% discount on business rates. By leasing their property to a charity, owners can not only benefit from reduced rates but also contribute to a good cause.
It is important for owners of listed buildings to be aware of their options when it comes to managing business rates. By exploring the various exemptions, reliefs, and incentives available, owners can reduce the financial burden of owning a listed property. Additionally, owners can seek advice from professionals such as surveyors, tax consultants, and preservation experts to help them navigate the complexities of business rates on listed buildings.
In conclusion, business rates on listed buildings can be a significant cost for property owners to consider. However, there are ways in which owners can effectively manage their rates and reduce their financial burden. By exploring exemptions, reliefs, and incentives, owners can ensure that their listed building remains a valuable asset while also preserving its unique character and historical significance.