Business rates, also known as non-domestic rates, are taxes paid on commercial properties in the UK. However, when it comes to listed buildings, the rules surrounding business rates can become more complex. Listed buildings are properties that are of special architectural or historic interest, and as such are protected under the law from alterations or demolition without special permission. This can have implications on the amount of business rates that need to be paid on these properties.
Listed buildings are divided into three categories – Grade I, Grade II*, and Grade II – based on their historical and architectural significance. Grade I buildings are of exceptional interest, Grade II* are particularly important buildings of more than special interest, and Grade II are those of special interest. These categories are determined by Historic England.
business rates on listed buildings are calculated in the same way as on any other commercial property, based on the rateable value of the property. However, there are several factors that can affect the amount of business rates that need to be paid on a listed building.
One of the main factors that can impact business rates on listed buildings is the condition of the property. Listed buildings often require specialist care and maintenance, which can be more expensive than on non-listed buildings. As a result, the rateable value of a listed building may be higher to reflect this increased cost of upkeep.
Another factor that can affect business rates on listed buildings is whether the property is in use. If a listed building is vacant or being used for a charitable purpose, it may be eligible for business rates relief. This relief can be up to 100% of the business rates that would normally be due on the property. However, this relief is not automatic and must be applied for through the local council.
The location of the listed building can also impact the amount of business rates that need to be paid. In some areas, local authorities offer discretionary relief on business rates for certain types of properties, including listed buildings. This relief may be based on factors such as the historical significance of the building or the economic impact of the building on the local area.
It’s important for owners of listed buildings to be aware of these factors that can affect business rates and to take advantage of any available relief or exemptions. Failure to pay business rates on a listed building can result in legal action being taken against the owner, including court proceedings and the possibility of the property being seized to cover the unpaid rates.
Some owners of listed buildings may be concerned about the impact of business rates on their property’s value. However, it’s important to note that the government has taken steps to limit the impact of business rates on listed buildings. In 2017, the government introduced a new scheme to cap the increase in business rates for properties with a rateable value of £100,000 or less.
In conclusion, business rates on listed buildings can be more complex than on non-listed commercial properties due to the special status of these buildings. Factors such as the condition of the property, its use, and its location can all impact the amount of business rates that need to be paid. Owners of listed buildings should be aware of these factors and take advantage of any available relief or exemptions to ensure they are not overpaying on their business rates.
Overall, understanding the implications of business rates on listed buildings is essential for owners to avoid financial penalties and to ensure the preservation of these important historical and architectural landmarks.