Listed buildings hold a special place in our historical and architectural heritage. They are protected by law to ensure that they are preserved for future generations to enjoy. However, owning a listed building also comes with its challenges, and one of the biggest concerns for many owners is the payment of business rates.
Business rates are taxes that are based on the rateable value of a property. They are calculated by the local government and are used to fund local services such as schools, roads, and waste collection. Listed buildings are no exception when it comes to paying business rates, but there are certain considerations that need to be taken into account.
Listed buildings are divided 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 alterations, which can impact the rateable value of the property.
One of the key considerations when it comes to business rates on listed buildings is whether the property is being used for commercial purposes. If the building is being used as a business premises, then business rates will need to be paid. This can be a significant cost for owners of listed buildings, especially if the property is in a prime location with a high rateable value.
Owners of listed buildings may be eligible for certain exemptions or reliefs on their business rates. For example, if the property is listed but not being used for commercial purposes, then the owner may be able to apply for an exemption. This could apply to buildings that are being used as a residential property, a charity shop, or a place of public worship.
Another option for owners of listed buildings is to apply for Listed Building Consent. This is a separate planning permission that is required for alterations to listed buildings, and it can also impact the rateable value of the property. If the alterations are deemed to be of benefit to the community or in the public interest, then the owner may be able to apply for relief on their business rates.
It is important for owners of listed buildings to be aware of the implications of business rates on their property. Failure to pay business rates can result in penalties and legal action, so it is essential to stay up to date with any changes to the rateable value of the property and to seek professional advice if needed.
In conclusion, business rates on listed buildings can be a significant cost for owners, but there are options available to help mitigate this expense. By understanding the impact of business rates and seeking advice where necessary, owners of listed buildings can ensure that their properties are preserved for future generations to enjoy.