Understanding Business Rates On Listed Buildings

Listed buildings are an important part of our cultural heritage, with their historical and architectural significance adding character and charm to our cities and towns. However, maintaining and operating a listed building can come with its own set of challenges, one of which is understanding and navigating the business rates that apply to these properties.

Business rates, also known as non-domestic rates, are a tax that is levied on most non-residential properties in the UK. This includes commercial buildings, offices, shops, and also listed buildings that are used for business purposes. The amount of business rates that apply to a property is calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA).

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. Each listed building is given a rateable value based on a number of factors including its size, location, and historical significance.

One of the main challenges when it comes to business rates on listed buildings is that the rateable value of these properties can often be higher than that of non-listed buildings of a similar size and use. This is because listed buildings are often older and require more maintenance and upkeep, which can increase the cost of operating the building. As a result, business owners and tenants of listed buildings can find themselves facing higher business rates bills than they had anticipated.

However, there are ways in which owners and tenants of listed buildings can reduce their business rates bills. One option is to apply for business rates relief, which is available for certain types of business and properties. Listed buildings that are being used for charitable purposes, for example, may be eligible for relief on their business rates bills. Similarly, buildings that are used for certain types of community or social purposes may also qualify for relief.

Owners and tenants of listed buildings can also apply for listed building consent, which is permission from the local planning authority to make alterations to a listed building. Making changes to a listed building without consent is illegal and can result in hefty fines, so it is important to ensure that any alterations are approved before proceeding. When applying for listed building consent, owners and tenants can also ask for a review of the rateable value of the property, which can help to lower their business rates bills.

Another option for reducing business rates on listed buildings is to apply for a business rates appeal. If owners or tenants believe that the rateable value of their property is too high, they can appeal to the VOA to have it reassessed. This can be a lengthy and complex process, but if successful, it can result in a significant reduction in business rates bills.

In summary, business rates on listed buildings can be a significant cost for owners and tenants, but there are ways in which these costs can be reduced. By applying for business rates relief, listed building consent, or a business rates appeal, owners and tenants of listed buildings can lower their business rates bills and make operating their historic properties more affordable.

Listed buildings are an important part of our cultural heritage and it is crucial that we find ways to support their preservation and maintenance. By understanding and navigating the business rates that apply to these properties, owners and tenants can ensure that their listed buildings continue to contribute to the character and charm of our cities and towns for years to come.