Business rates are a tax that is levied on most non-domestic properties, including shops, offices, warehouses, and factories. The amount of business rates payable is based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). However, when it comes to empty listed buildings, the rules around business rates can become more complex and potentially burdensome for property owners.
Listed buildings are those that have been officially recognized and designated as being of special architectural or historic interest. These buildings are often protected by law, and any alterations or changes to the property must be approved by the relevant authorities. While the preservation of listed buildings is important for maintaining our architectural heritage, it can also present challenges for property owners who may struggle to find a viable use for the building.
One of the key issues facing owners of empty listed buildings is the payment of business rates. In most cases, business rates are only payable on buildings that are being used for business purposes. However, under current regulations, owners of empty listed buildings are still required to pay business rates at the full rateable value of the property after a short period of exemption.
This can be a significant financial burden for property owners, especially if they are unable to find a suitable tenant or buyer for the building. In some cases, the business rates payable on an empty listed building can far exceed any potential rental income, making it uneconomical for owners to retain ownership of the property.
The issue of business rates on empty listed buildings has been a point of contention for many years, with property owners and heritage organizations alike calling for a review of the current system. The main argument put forward by critics is that the current regulations penalize property owners for preserving and maintaining historic buildings, discouraging investment in these important assets.
There have been calls for the government to introduce a more flexible system for business rates on empty listed buildings, such as providing longer periods of exemption or allowing for reduced rates to be paid. This would help to alleviate some of the financial pressures faced by owners of listed buildings and encourage the preservation and regeneration of these important assets.
In response to these concerns, the government has made some changes to the regulations around business rates on empty listed buildings. In April 2017, the government introduced a new relief scheme for listed buildings, known as the “Listed Building Exemption.” This scheme allows owners of empty listed buildings to apply for relief from business rates for a period of up to 12 months, with the possibility of extending the relief for a further 6 months in certain circumstances.
While the introduction of the Listed Building Exemption was a positive step towards addressing the issue of business rates on empty listed buildings, some critics argue that it does not go far enough to provide meaningful relief for property owners. The limited duration of the relief period and the strict criteria for eligibility mean that many owners are still facing significant financial burdens when it comes to paying business rates on empty listed buildings.
In conclusion, the issue of business rates on empty listed buildings remains a contentious and complex issue for property owners and heritage organizations alike. While the government has introduced some measures to provide relief for owners of empty listed buildings, there is still a need for further reforms to ensure that the preservation of our architectural heritage is not hindered by financial constraints.