Business rates are a necessary evil for all businesses, but when it comes to empty listed buildings, the situation becomes even more complicated. Listed buildings are protected by law due to their historical and architectural significance, but this protection can come at a cost for property owners in the form of business rates. In this article, we will explore the implications of business rates on empty listed buildings and how they can impact property owners.
Listed buildings are unique in that they are considered to be of special architectural or historic interest, and are therefore protected by law from demolition or alteration without special permission. This protection is paramount in preserving our historical heritage, but it can also present challenges for property owners, particularly when it comes to business rates.
Property owners are still required to pay business rates on empty listed buildings, regardless of whether they are generating any income. This can be a significant financial burden, especially for owners of multiple listed properties or those who are struggling to find tenants for their buildings. The rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA).
The business rates on empty listed buildings can often exceed the rental income that could be generated from them, making it difficult for owners to justify keeping them empty. This can lead to buildings falling into disrepair or being sold to developers who may not have the same interest in preserving their historical significance.
One of the main reasons behind the high business rates on empty listed buildings is the lack of available exemptions or reliefs. While certain exemptions exist for non-listed buildings, such as small business rate relief or charitable status, these are not typically applicable to listed buildings. This leaves property owners with little recourse when it comes to reducing their rates bill.
Another issue is the lack of consistency in how business rates are applied to empty listed buildings. There have been cases where property owners have successfully appealed their rates bills, arguing that the building is unoccupiable due to its protected status. However, these cases are rare and often require a significant amount of time and resources to pursue.
The government has made some efforts to address the issue of business rates on empty listed buildings. In 2017, they introduced a 100% relief for empty listed buildings for up to three months, followed by a 50% discount for the next three months. While this was a step in the right direction, many property owners argue that it is not enough to alleviate the financial burden of keeping their buildings empty.
There have been calls for further reform to the business rates system to better accommodate listed buildings. Some have suggested introducing a separate rateable value for listed buildings or providing increased relief for owners who are actively seeking tenants or carrying out necessary repairs. These changes could help to incentivize property owners to maintain their buildings and bring them back into productive use.
In the meantime, property owners of empty listed buildings must navigate the challenging landscape of business rates. Some have chosen to explore alternative options, such as leasing their buildings to temporary tenants or using them for community events to generate income and reduce their rates bill. Others have decided to sell their buildings to developers who are willing to take on the financial responsibility of bringing them back into use.
In conclusion, business rates on empty listed buildings can be a significant financial burden for property owners, with little relief available to alleviate the costs. The lack of exemptions and inconsistencies in how rates are applied make it difficult for owners to justify keeping their buildings empty. While there have been some efforts to address the issue, further reform is needed to ensure that listed buildings are preserved and brought back into productive use.