When it comes to owning property, businesses must be prepared for a variety of expenses and fees. One such fee that often catches property owners off guard is the business rates on empty listed buildings. These rates can be a significant financial burden for businesses that own or lease listed properties, especially if they are unoccupied. In this article, we will explore what exactly business rates on empty listed buildings are, how they are calculated, and what businesses can do to manage and potentially reduce these costs.
Listed buildings are those of historical or architectural significance that have been placed on a government-registered list. These buildings are protected by law, meaning that any alterations or changes to the structure must be approved by the appropriate authorities. While owning a listed building can come with prestige and sometimes financial incentives, it also brings with it certain responsibilities, including paying business rates on the property.
Business rates are a tax on commercial properties in the UK, similar to council tax for residential properties. The amount a business must pay in rates is determined by the rateable value of the property, which is assessed by the government’s Valuation Office Agency (VOA). For empty listed buildings, the rateable value is usually based on the rental value the property would achieve if it were occupied.
business rates on empty listed buildings can be a contentious issue for property owners, as they are required to pay these rates even when the building is unoccupied. This can be a significant financial burden for businesses that are unable to find tenants or are in the process of renovating or restoring a listed property.
In some cases, businesses may be eligible for a temporary exemption from business rates on empty listed buildings. For example, if a property is undergoing renovation or repair work that prevents it from being used, the business may be able to apply for a three-month exemption. However, this exemption is not guaranteed and is subject to approval by the local council.
Business owners who are struggling with the financial burden of business rates on empty listed buildings may also be able to take advantage of certain reliefs or discounts. For example, properties with a rateable value of under £12,000 are eligible for Small Business Rate Relief, which can reduce the amount of business rates owed. Additionally, properties that are used for certain charitable purposes or are considered to have a community benefit may also be eligible for relief or discounts on business rates.
For businesses that are unable to find tenants for their empty listed buildings, there are a few options to consider. One option is to explore leasing or licensing the property to temporary occupants, such as pop-up shops or artists looking for studio space. While this may not provide a long-term solution, it can help generate some income and reduce the financial burden of empty property rates.
Another option for businesses struggling with business rates on empty listed buildings is to consider alternative uses for the property. Depending on the location and condition of the building, it may be possible to convert it into residential units, offices, or retail space. While this option may require significant investment and planning, it can ultimately help offset the costs of business rates and generate a new revenue stream for the business.
Ultimately, business rates on empty listed buildings can be a complex and expensive issue for property owners to navigate. However, by exploring options for relief, discounts, and alternative uses for the property, businesses can mitigate the financial burden of these rates and potentially find a solution that works for their unique circumstances. With careful planning and consideration, businesses can effectively manage their business rates on empty listed buildings and ensure that they are not unduly burdened by this financial obligation.