Navigating Business Rates On Listed Buildings
Listed buildings hold a special place in our history and culture, with their unique architecture and historical significance. However, owning a listed building comes with its own set of challenges, one of which is dealing with business rates. Understanding how business rates are calculated and how they can be mitigated is essential for owners of listed properties.
Business rates are a tax that all non-domestic properties in the UK are required to pay. They are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). The rateable value is a reflection of the annual rental value of the property at a specific valuation date set by the VOA. For listed buildings, the rateable value is not based on the property’s market value but on its value as a listed building.
Listed buildings are classified into three categories: Grade I, Grade II*, and Grade II. Grade I buildings are of exceptional interest, Grade II* are particularly important buildings of more than special interest, and Grade II are of special interest. The higher the grade, the more restrictions there are on making changes to the building. This can impact the rateable value of the property, as the VOA takes into account the restrictions placed on listed buildings when calculating business rates.
Owners of listed buildings can take certain steps to mitigate the impact of business rates on their properties. One option is to apply for listed building consent to carry out works that will improve the energy efficiency of the building. By making the building more energy-efficient, owners can qualify for business rates relief under the Energy Efficiency scheme. This can result in a reduction in business rates for a set period, providing financial relief for owners of listed buildings.
Another option for owners of listed buildings is to apply for transitional relief. Transitional relief is a scheme provided by the government to help businesses that are facing a significant increase in their business rates bill due to the revaluation of their property. Owners of listed buildings can apply for transitional relief if they can demonstrate that the increase in business rates will have a significant impact on the viability of their business. This can provide a temporary reduction in business rates while owners adjust to the higher rates.
Owners of listed buildings may also be eligible for small business rate relief if the rateable value of their property is below a certain threshold. Small business rate relief is a scheme provided by local authorities to support small businesses by reducing their business rates bill. Owners of listed buildings should check with their local authority to see if they qualify for this relief and how they can apply for it.
In addition to these relief schemes, owners of listed buildings can also challenge the rateable value of their property if they believe it has been calculated incorrectly. This process, known as a business rates appeal, involves submitting evidence to the VOA to support a lower rateable value for the property. Owners can use professional valuers to help them with this process and increase their chances of a successful appeal.
Overall, navigating business rates on listed buildings can be complex, but with the right knowledge and support, owners can mitigate the impact of these rates on their properties. By exploring the various relief schemes available, applying for transitional relief, and challenging the rateable value of their property, owners can ensure that they are paying a fair amount of business rates for their listed buildings. Listed buildings are a valuable part of our heritage, and it is important to preserve them for future generations while also managing the financial aspects of owning these unique properties.