Business rates are a form of tax that is paid on most non-domestic properties, including shops, offices, factories, and warehouses. These rates are calculated based on the rateable value of the property and are used to fund local services provided by the local council. However, when it comes to listed buildings, the rules around business rates can be quite different.
Listed buildings are protected by law due to their historical or architectural significance. They are divided into three categories – Grade I, Grade II*, and Grade II – with Grade I being the most significant. These buildings are often considered national treasures and are subject to special planning regulations to ensure their preservation.
When it comes to business rates on listed buildings, there are a few key points to consider. Firstly, listed buildings are exempt from paying business rates on the parts of the building that are deemed to be of historical or architectural significance. This means that if you own a listed building but only use a small portion of it for business purposes, you may be eligible for a reduction in your business rates bill.
The exemption for listed buildings applies to both the owner-occupier and tenants of the property. This means that if you are renting a listed building for your business, you may still be eligible for a reduction in your business rates bill if the property is deemed to be of historical or architectural significance.
In order to qualify for the exemption, the building must be listed on the National Heritage List for England, maintained by Historic England. The exemption also applies to listed monuments, and in some cases, buildings in conservation areas.
In cases where only part of a listed building is used for business purposes, the Valuation Office Agency (VOA) will assess the rateable value of the non-exempt areas of the building. This can be a complex process, as the VOA will need to determine the percentage of the building that is used for business and calculate a rateable value based on this.
It’s worth noting that even if a building is listed, it may still be liable for business rates on areas that are not considered to be of historical or architectural significance. For example, if a Grade II listed building has been extensively modernized or has an extension that is not listed, business rates may still be payable on these parts of the property.
If you believe that your listed building should be exempt from business rates, it is important to provide evidence to the VOA to support your case. This could include historical documents, photographs, or architectural drawings that demonstrate the significance of the building.
It’s also worth noting that some local councils offer discretionary relief on business rates for listed buildings. This could include a reduction in rates or a complete exemption, depending on the council’s policies. It’s worth contacting your local council to find out if you are eligible for any additional relief.
In conclusion, business rates on listed buildings can be a complex issue, but it’s important to understand the rules and regulations in order to ensure that you are paying the correct amount. If you own or occupy a listed building, it’s worth seeking advice from a professional advisor or contacting the VOA to discuss your individual circumstances. By understanding the exemptions and relief available for listed buildings, you can ensure that you are not paying more than you need to in business rates.