Business rates are a form of tax that is levied on most non-domestic properties in the UK. This includes commercial buildings, shops, offices, and industrial premises. However, there is a special provision when it comes to listed buildings. Listed buildings are those that are considered to have historical or architectural significance and are therefore protected from alterations or demolition. Many listed buildings are left empty due to their unique status, which can have implications for the owners in terms of business rates.
When it comes to business rates on empty listed buildings, there are special rules that apply. These rules are designed to strike a balance between preserving these important buildings and ensuring that owners are not unfairly burdened with high taxes. In most cases, owners of empty listed buildings are required to pay business rates just like any other commercial property. However, there are certain exemptions and discounts that may apply in some circumstances.
One of the key exemptions for business rates on empty listed buildings is the Class B exemption. This exemption applies to listed buildings that have been empty for a certain period of time. Currently, buildings that have been empty for three months or more may qualify for this exemption. This means that the owner will not have to pay any business rates for the duration of the exemption period. However, it is important to note that this exemption does not apply indefinitely. Once the exemption period has expired, the owner will be required to pay business rates in full.
Owners of empty listed buildings may also be eligible for a discount on their business rates. This discount is known as the Section 47 relief and applies to buildings that are undergoing or have undergone repairs or structural alterations. The amount of the discount will vary depending on the extent of the work that has been carried out on the building. In some cases, owners may be eligible for a 100% discount for a limited period of time. This can provide significant savings for owners who are investing in the preservation of their listed building.
In addition to exemptions and discounts, owners of empty listed buildings may also be able to apply for hardship relief. Hardship relief is available to owners who are experiencing financial difficulties and are struggling to pay their business rates. In order to qualify for hardship relief, owners must be able to demonstrate that they are facing genuine financial hardship and that they have taken steps to try and alleviate the situation. If successful, owners may be granted a reduction in their business rates or be allowed to pay in installments.
It is important for owners of empty listed buildings to be aware of their obligations when it comes to business rates. Failure to pay business rates can result in penalties, interest charges, and even legal action. It is therefore essential to seek advice if owners are unsure about their obligations or entitlements. There are a number of organizations and charities that provide support and guidance to owners of listed buildings, including the Listed Property Owners’ Club and Historic England.
In conclusion, business rates on empty listed buildings can be a complex and challenging issue for owners. While there are exemptions, discounts, and relief options available, it is important for owners to be proactive in seeking advice and assistance. By understanding their obligations and entitlements, owners can ensure that they are compliant with the law and are able to make informed decisions about the future of their listed building. Ultimately, preserving these important buildings for future generations is a responsibility that all owners of listed buildings share.