Listed buildings are considered to be of historical or architectural significance and are protected under law to ensure their preservation for future generations. However, owning a listed building comes with its own set of challenges, one of which is the payment of business rates.
Business rates, also known as non-domestic rates, are taxes that businesses and non-domestic property owners in the UK are required to pay to local authorities. The amount payable is based on the rateable value of the property, which is assessed by the Valuation Office Agency (VOA) and reviewed every five years.
When it comes to listed buildings, the rules surrounding business rates can be complex and confusing for owners. Listed buildings are divided into three categories: Grade I, Grade II*, and Grade II. Each category comes with its own set of regulations and guidelines when it comes to business rates.
Grade I listed buildings are considered to be of exceptional interest and are of national importance. These buildings are deemed to be the most valuable in terms of historical and architectural significance. Owners of Grade I listed buildings may be eligible for relief on their business rates. However, this relief is not automatic and owners must apply to their local authority for it.
Grade II* listed buildings are also considered to be of special interest and are of more than special interest. Owners of Grade II* listed buildings may also be eligible for relief on their business rates, but again, this is not automatic and owners must apply for it.
Grade II listed buildings are the most common type of listed building and are considered to be of special interest. Owners of Grade II listed buildings are not automatically entitled to relief on their business rates. However, there are instances where relief may be granted, such as if the building is unoccupied or undergoing structural repairs.
It is important for owners of listed buildings to be aware of the rules surrounding business rates and to understand what relief they may be eligible for. Failure to pay business rates on a listed building can result in hefty fines and legal action being taken against the owner.
There are a number of ways in which owners of listed buildings can seek relief on their business rates. The most common form of relief is through the Heritage Enterprise Scheme, which provides financial assistance to owners of listed buildings who wish to bring them back into use. This scheme provides grants and low-cost loans to help with the cost of repairs and renovations.
Another way in which owners of listed buildings can seek relief on their business rates is through the Listed Places of Worship Grant Scheme. This scheme provides financial assistance to owners of listed places of worship, including churches, mosques, and temples. The scheme reimburses 100% of the business rates payable on a listed place of worship.
Owners of listed buildings can also seek relief on their business rates through the small business rates relief scheme, which provides a discount on business rates for small businesses. To qualify for this relief, the rateable value of the property must be below a certain threshold.
In addition to seeking relief on their business rates, owners of listed buildings can also take steps to reduce the amount payable. This can include negotiating with the VOA to have the rateable value of the property reduced or challenging the assessment through the appeals process.
In conclusion, business rates on listed buildings can be a complex and challenging issue for owners to navigate. However, there are a number of ways in which relief can be sought, from financial assistance schemes to negotiating with the VOA. It is important for owners to be proactive in seeking relief and to be aware of their rights and obligations when it comes to paying business rates on their listed building.