Business rates are a cost that all businesses need to take into consideration when operating from a commercial property. These rates are a tax on non-domestic properties, and they contribute towards the funding of local services such as roads, schools, and waste collection. However, when it comes to listed buildings, the rules surrounding business rates can be a bit more complicated. In this article, we will delve into the specifics of business rates on listed buildings and what owners need to know.
Listed buildings are properties that have been deemed to have special architectural or historic interest by Historic England. These buildings are protected by law, and any alterations or changes to the structure must be approved by the local planning authority. This means that owners of listed buildings are often faced with additional costs and restrictions when it comes to maintaining and renovating their property.
When it comes to business rates on listed buildings, the rules are slightly different than for non-listed properties. Listed buildings are exempt from paying business rates on any areas that are used for the public good, such as places of worship, museums, and schools. However, if the property is being used for commercial purposes, such as an office or shop, then business rates will still apply.
Owners of listed buildings that are used for commercial purposes may be eligible for certain discounts or exemptions on their business rates. For example, if the property is unoccupied for a certain period of time, owners may be eligible for a 100% discount on their rates for the first three months (or six months for industrial properties). This can provide some relief for owners who are struggling to find tenants for their listed building.
In addition to discounts for unoccupied properties, owners of listed buildings may also be eligible for small business rate relief. This scheme is aimed at helping small businesses with a rateable value of less than £15,000 (or £12,000 in London) by reducing the amount of business rates they need to pay. This relief can range from 100% for properties with a rateable value of £12,000 or less, to tapered relief for properties with a rateable value between £12,001 and £15,000.
Another important consideration for owners of listed buildings is the impact of renovations or alterations on their business rates. If owners carry out work on their property that increases its rateable value, they may see an increase in their business rates. This is something that owners need to be aware of before starting any renovation work, as it could have financial implications for their business.
One common misconception about listed buildings is that they are automatically exempt from paying business rates. While it is true that certain areas of listed buildings are exempt if they are used for the public good, any commercial areas within the property are still subject to business rates. Owners of listed buildings should therefore be aware of their obligations when it comes to paying business rates, and seek advice from a specialist if they are unsure about their liability.
In conclusion, business rates on listed buildings can be a complex issue for owners to navigate. While certain areas of listed buildings may be exempt from paying business rates, any commercial areas within the property will still be subject to this tax. Owners of listed buildings should be aware of their obligations when it comes to paying business rates, and explore any discounts or exemptions that they may be eligible for. By understanding the rules surrounding business rates on listed buildings, owners can ensure that they are compliant with the law and avoid any unexpected costs.