Business rates can be a significant cost for any business owner, but when it comes to owning a listed building, there are some special considerations to keep in mind. Listed buildings are properties that are of historical or architectural significance and are therefore protected by law. This protection can affect not only how the building can be altered or renovated but also how much the owner will pay in business rates.
Listed buildings are categorised into three grades: Grade I, Grade II*, and Grade II. Grade I buildings are of exceptional historic or architectural significance, Grade II* are particularly important buildings of more than special interest, and Grade II are buildings of special interest. The higher the grade, the stricter the restrictions on alterations or changes that can be made to the building.
When it comes to business rates on listed buildings, there are a few key points to keep in mind. Firstly, the rateable value of a listed building is determined by the Valuation Office Agency (VOA) in England, the Scottish Assessors in Scotland, and the Land and Property Services in Northern Ireland. This value is used to calculate the amount of business rates that the owner will need to pay.
In some cases, owners of listed buildings may be eligible for relief on their business rates. This relief could be in the form of a discount or exemption from paying business rates altogether. However, these reliefs are usually only available in specific circumstances, such as if the building is empty or undergoing renovation.
It’s also worth noting that business rates on listed buildings can be higher than on non-listed properties. This is because listed buildings often require a higher level of maintenance and care to preserve their historic or architectural value. Additionally, the cost of renovations or alterations to a listed building can be higher due to the restrictions that are in place to protect the building’s heritage.
One way that business owners can reduce their business rates on listed buildings is by making energy efficiency improvements. The government offers incentives for businesses to improve the energy efficiency of their properties, including listed buildings. By making these improvements, owners can not only reduce their carbon footprint but also potentially qualify for discounts on their business rates.
Another option for owners of listed buildings is to apply for listed building consent. This is required for any work that will alter the character of a listed building, and obtaining this consent can sometimes result in a reduction in business rates. However, it’s important to note that obtaining listed building consent can be a lengthy and complex process, so it’s essential to consult with a professional before making any changes to a listed building.
In some cases, the local council may offer discretionary relief on business rates for listed buildings. This relief is typically granted on a case-by-case basis and is at the discretion of the council. Business owners should contact their local council to inquire about any available relief for their listed building.
In conclusion, business rates on listed buildings can be a complex issue for owners to navigate. Understanding the different grades of listed buildings, how rateable values are determined, and the potential for relief or discounts can help owners effectively manage their business rates. By making energy efficiency improvements, applying for listed building consent, or seeking discretionary relief from the local council, owners of listed buildings can potentially reduce their business rates and preserve these important pieces of history for future generations.