Business rates are a significant expense for property owners, and this is especially true for owners of empty listed buildings. Listed buildings are properties that are considered to have special architectural or historical significance and are therefore protected from alterations or demolition. While these buildings add character to our towns and cities, they also come with additional costs, including business rates on empty properties.
Business rates are taxes that businesses in the UK pay based on the rateable value of their property. The rateable value is determined by the Valuation Office Agency (VOA) and is used to calculate how much a business owner must pay in business rates. This means that even if a property is empty, the owner is still required to pay business rates on it.
Listed buildings are subject to the same business rates rules as any other property, meaning that owners of empty listed buildings must still pay business rates on them. This can be a significant financial burden, especially for owners who are unable to generate income from their property due to its listed status.
One of the main challenges with business rates on empty listed buildings is that owners may struggle to find tenants or buyers due to the restrictions placed on listed properties. Listed buildings are often subject to strict planning regulations, which can make it difficult for owners to carry out renovations or alterations to make the property more attractive to potential tenants or buyers.
In addition, the costs of maintaining a listed building can be higher than those of a non-listed property, as owners are often required to use specific materials and construction methods to preserve the building’s historical integrity. This can add to the overall costs of owning a listed property, making it even more challenging for owners to meet their business rates obligations.
One potential solution to this issue is the Government’s Empty Property Rates Relief scheme, which provides relief from business rates for owners of empty properties. However, this relief does not apply to empty listed buildings, leaving owners with few options for reducing their business rates bill.
The Federation of Small Businesses (FSB) has called for the Government to review the business rates system for empty listed buildings, arguing that the current system is unfair and places an unnecessary financial burden on property owners. The FSB has suggested that the Government could introduce a targeted relief scheme for owners of empty listed buildings, similar to the relief provided for other types of empty properties.
In the meantime, owners of empty listed buildings are left to navigate the complexities of the business rates system on their own. Many owners may be unaware of the full extent of their business rates obligations or the potential consequences of falling behind on payments. This can lead to financial difficulties and even legal action, further adding to the stress of owning an empty listed building.
Furthermore, the impact of the COVID-19 pandemic has only exacerbated the situation for owners of empty listed buildings. With many businesses forced to close their doors and properties sitting empty for extended periods, owners are facing even greater financial pressures. The Government’s support measures, such as the business rates holiday and grants for retail, hospitality, and leisure businesses, have provided some relief. However, these measures do not extend to owners of empty listed buildings, leaving them to bear the full brunt of their business rates obligations.
In conclusion, business rates on empty listed buildings present a significant financial challenge for owners. The additional costs of owning and maintaining a listed property, coupled with the restrictions on alterations and renovations, make it difficult for owners to generate income from their property. This, combined with the lack of targeted relief schemes for empty listed buildings, means that owners are left with few options for reducing their business rates bill. As the Government continues to review the business rates system, it is crucial that the unique challenges faced by owners of empty listed buildings are taken into account to ensure a fair and sustainable solution for all stakeholders.