Listed buildings hold a special place in our history and heritage, with their architectural significance being recognized and preserved for future generations. However, being the owner of a listed building comes with a unique set of challenges, one of which is dealing with business rates. business rates on listed buildings can often be a complex issue, requiring a good understanding of the regulations and rules in place.
Listed buildings are categorized into three different grades – Grade I, Grade II*, and Grade II. Grade I buildings are of exceptional interest, Grade II* buildings are particularly important, and Grade II buildings are of special interest. When it comes to business rates, the grade of the listed building can have an impact on how much you pay.
For listed buildings that are used for commercial purposes, such as shops, offices, or restaurants, business rates are payable to the local council. The rateable value of the property is assessed by the Valuation Office Agency (VOA) and is based on the rental value of the property. However, listed buildings often come with restrictions on what changes can be made to the property, which can affect its rental value and, in turn, its rateable value.
One of the key factors that can affect business rates on listed buildings is whether the property is classified as “hereditament” – a separate unit of property that can be separately rated. If a listed building is split into multiple hereditaments, each part will be assessed separately for business rates. This can be particularly complex for owners of listed buildings that have been divided into multiple units, such as a listed building that has been converted into a number of shops or offices.
Another important factor to consider when it comes to business rates on listed buildings is whether the property is eligible for any exemptions or reliefs. There are certain exemptions available for listed buildings that are used for specific purposes, such as charity buildings or buildings used for public worship. Owners of listed buildings should check with their local council to see if they qualify for any exemptions or reliefs that could help reduce their business rates.
It is also worth noting that listed buildings that are undergoing renovation or repair work may be eligible for a temporary relief on their business rates. This relief is designed to help owners of listed buildings that are investing in the preservation and restoration of the property, and can provide valuable financial support during the construction phase.
For owners of listed buildings who are concerned about the impact of business rates on their property, there are a number of steps that can be taken to try and reduce the amount that they pay. One option is to appeal the rateable value of the property if you believe it has been assessed incorrectly. This can be a complex process, but with the help of a professional advisor or surveyor, it may be possible to get the rateable value reduced.
Another option is to explore alternative uses for the property that may qualify for lower business rates. For example, converting a listed building into residential apartments may result in a lower rateable value and therefore lower business rates. However, it is important to note that any changes to the use of a listed building must be in line with the restrictions and regulations in place to protect the historic integrity of the property.
In conclusion, navigating business rates on listed buildings can be a complex and challenging process. Owners of listed buildings need to be aware of the regulations and rules in place, as well as any potential exemptions or reliefs that may be available to them. By seeking professional advice and exploring all available options, owners of listed buildings can ensure that they are paying the correct amount of business rates and are able to preserve these important pieces of our history and heritage for future generations.