business rates on empty listed buildings can be a source of frustration for property owners and developers alike. Listed buildings are protected for their historic or architectural significance, but this protection can come at a cost when it comes to business rates. In this article, we will explore the implications of business rates on empty listed buildings and how property owners can navigate this complex issue.
Listed buildings are subject to business rates just like any other commercial property. However, the rules surrounding business rates on empty properties can be particularly harsh. In England, for example, property owners are required to pay 100% of the business rates on empty commercial properties, including empty listed buildings, after a three-month grace period. This can put a significant financial strain on property owners, especially if they are struggling to find tenants or secure planning permission for redevelopment.
One of the main reasons why business rates on empty listed buildings can be so high is that the rateable value of a listed building is often much higher than that of a non-listed property. This is because listed buildings are valued based on their historical and architectural significance rather than their rental potential. As a result, property owners can find themselves paying substantial business rates on a building that is not generating any income.
Another issue with business rates on empty listed buildings is that property owners are often limited in how they can use the building in order to avoid paying business rates. For example, if a property owner decides to use the building for storage or as a workshop while they try to find a tenant, they may still be liable for business rates on the property. This can discourage property owners from making productive use of their empty listed buildings, further exacerbating the issue.
Property owners of empty listed buildings also face challenges when it comes to securing planning permission for redevelopment. Local authorities are often reluctant to grant planning permission for the redevelopment of listed buildings, as they are keen to preserve the historic or architectural significance of these properties. This can leave property owners in a difficult position, as they may be unable to redevelop the building in order to generate income and avoid paying business rates.
So, what can property owners do to navigate the complex issue of business rates on empty listed buildings? One option is to apply for relief or exemptions from business rates. In some cases, property owners may be eligible for temporary relief from business rates if they can demonstrate that they are actively trying to let or sell the property. Property owners may also be eligible for exemptions from business rates if the building is undergoing major repair or refurbishment works.
Another option for property owners is to explore alternative uses for their empty listed buildings. For example, property owners could consider converting their listed building into residential accommodation, a hotel, a restaurant, or a cultural venue. By diversifying the use of the building, property owners may be able to generate income and reduce their liability for business rates.
It is also important for property owners to engage with their local authority and Historic England to discuss potential solutions for their empty listed buildings. Local authorities may be willing to work with property owners to find ways to bring the building back into use while preserving its historic or architectural significance. Historic England may also be able to provide guidance and support to property owners seeking to redevelop their listed buildings.
In conclusion, business rates on empty listed buildings can present a significant challenge for property owners. The high rateable value of listed buildings, restrictions on alternative uses, and challenges securing planning permission can all contribute to the financial strain of owning an empty listed building. However, by exploring relief options, diversifying the use of the building, and engaging with local authorities and Historic England, property owners can navigate this complex issue and find sustainable solutions for their empty listed buildings.