Empty listed buildings hold historical and architectural significance, adding to the cultural fabric of our cities and towns. However, when these buildings sit vacant, they still incur business rates that can present a financial burden to the owner. Understanding how business rates are calculated for empty listed buildings is crucial for property owners looking to navigate this complex regulatory landscape.
Business rates are a tax that property owners pay to their local council. The rates are based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). Listed buildings are subject to business rates just like any other property, but there are certain exemptions and reliefs available to property owners of empty listed buildings.
When a listed building is empty, the owner is still liable to pay business rates. However, listed buildings are eligible for a 100% discount on business rates for the first three months that the property is empty. This means that the owner does not have to pay any business rates for the first three months of vacancy. After the initial three-month period, the property owner is required to pay the full amount of business rates, unless they qualify for an exemption or relief.
One common exemption for empty listed buildings is the ‘occupation by a charity’ exemption. If a charity occupies the listed building, they are eligible for an 80% discount on business rates. This exemption is intended to support charities that may not have the resources to pay full business rates. However, it is important to note that this exemption only applies if the charity is occupying the property for charitable purposes.
Another relief available to property owners of empty listed buildings is the ‘Small Business Rate Relief’ (SBRR). If the rateable value of the empty listed building is below a certain threshold, the property owner may qualify for SBRR, which provides a discount on business rates. This relief is designed to support small businesses that may be struggling to pay their business rates.
Property owners of empty listed buildings may also be able to apply for ‘hardship relief’ if they are experiencing financial difficulties. Hardship relief is granted at the discretion of the local council and is intended to provide temporary relief to property owners who are struggling to pay their business rates. It is important to note that hardship relief is not a long-term solution and property owners will still be required to pay their business rates once their financial situation improves.
Navigating business rates on empty listed buildings can be a complex and challenging process. Property owners must be aware of the exemptions and reliefs available to them and be proactive in applying for them. Failure to pay business rates on an empty listed building can result in legal action being taken against the property owner, including the seizure of assets or court proceedings.
In conclusion, business rates on empty listed buildings can present a financial burden to property owners. However, there are exemptions and reliefs available that can help to alleviate this burden. Property owners must be proactive in applying for these exemptions and reliefs to ensure that they are not paying more than they need to. By understanding the regulations surrounding business rates on empty listed buildings, property owners can navigate this complex landscape and ensure that their historic buildings are preserved for future generations.