Business rates are a form of tax that businesses in the UK must pay on the commercial properties they occupy. The rates are calculated based on the rateable value of the property, which is determined by the government’s Valuation Office Agency (VOA). However, when it comes to listed buildings, there are some unique factors to consider that can impact the business rates that a company must pay.
Listed buildings are those that have been deemed to have special architectural or historic interest and are therefore protected by law. The listing of a building can affect its value, usability, and maintenance costs, but it can also impact the business rates that the occupier must pay.
One of the key factors that can affect the business rates on listed buildings is the state of repair of the property. Listed buildings are often older and more delicate than modern buildings, which can make them more expensive to maintain and repair. If a listed building is in poor condition or requires significant repairs, this can impact its rateable value and, consequently, the business rates that the occupier must pay.
In some cases, listed buildings may be eligible for exemptions or discounts on their business rates. For example, buildings that are in disrepair or undergoing repairs may be eligible for a temporary empty property rate relief, which can reduce the amount of business rates that must be paid. Similarly, if a listed building is being used for certain charitable or community purposes, it may be eligible for relief on its business rates.
However, it is important to note that these exemptions and reliefs are not automatic and must be applied for through the local council. It is also worth noting that the eligibility criteria for these exemptions and reliefs can vary depending on the local authority, so it is important to check with the relevant council to see what options are available for a specific listed building.
Another factor that can impact the business rates on listed buildings is their location. Buildings in prime city centre locations or in areas with high demand may have higher rateable values, which can in turn lead to higher business rates. Conversely, buildings in less desirable locations or areas with lower demand may have lower rateable values and therefore lower business rates.
In some cases, the listing of a building itself can impact its rateable value and therefore its business rates. Listed buildings are subject to certain restrictions and regulations that can affect their use and development potential. For example, listed buildings may be subject to stricter planning controls, which can limit the types of businesses that can occupy them or the alterations that can be made to them. These restrictions can impact the overall value of the property and, by extension, the business rates that must be paid.
Overall, business rates on listed buildings can be complex and are influenced by a variety of factors, including the state of repair of the building, its location, and the impact of the listing itself. While listed buildings may be eligible for exemptions or reliefs on their business rates, it is important for occupiers to be aware of the potential impacts of listing on their rates and to explore all available options for reducing their tax liabilities.
In conclusion, understanding the impact of business rates on listed buildings is essential for businesses that occupy these unique and historic properties. By being aware of the factors that can influence rates on listed buildings, occupiers can better manage their tax liabilities and ensure that they are not paying more than necessary. With careful planning and consideration, businesses can navigate the complexities of business rates on listed buildings and make the most of these valuable assets.