Listed buildings are an integral part of our cultural heritage, preserving the history and character of our cities and towns. However, for business owners who operate out of listed buildings, there are some additional considerations to keep in mind when it comes to business rates. In this article, we will explore the ins and outs of business rates on listed buildings and provide some guidance on how to navigate this complex issue.
Listed buildings are properties that have been deemed to have special architectural or historic interest. There are three categories of listed buildings in the UK: Grade I, Grade II*, and Grade II. Grade I buildings are of exceptional interest, Grade II* buildings are particularly important buildings of more than special interest, and Grade II buildings are of special interest. These listings are maintained by Historic England and Historic Environment Scotland in England and Scotland, respectively.
One of the main issues that business owners face when operating out of listed buildings is the calculation of business rates. Business rates are a tax on non-domestic properties that help fund local services. The rateable value of a property is used to calculate how much a business owner will need to pay in business rates. However, when it comes to listed buildings, there are some exemptions and reliefs that may apply.
In general, listed buildings are still subject to business rates like any other commercial property. However, there are certain exemptions and reliefs that may apply to listed buildings to help alleviate the burden of business rates on business owners. One of the main reliefs available to business owners of listed buildings is the Listed Building Allowance.
The Listed Building Allowance is a form of tax relief that is available to owners of listed buildings who carry out qualifying works to repair or restore the property. The relief allows business owners to claim a deduction on their business rates for a certain period of time, depending on the nature of the works carried out. It is important to note that the Listed Building Allowance is only available for works that are necessary to maintain the character of the listed building, so not all repair and maintenance works will qualify for the relief.
Another relief that may be available to business owners of listed buildings is the Small Business Rate Relief. This relief is aimed at businesses that operate out of smaller properties and provides a discount on their business rates. However, this relief is subject to certain eligibility criteria and may not be available to all business owners of listed buildings.
It is important for business owners of listed buildings to be aware of the potential reliefs and exemptions that may apply to them in order to reduce their business rates liability. Seeking advice from a qualified tax professional or surveyor who is experienced in dealing with listed buildings can help business owners navigate the complexities of business rates and ensure that they are taking advantage of any available reliefs.
In addition to seeking advice on potential reliefs and exemptions, business owners of listed buildings should also be aware of their rights when it comes to challenging their business rates valuation. If a business owner believes that their rateable value is incorrect, they have the right to make an appeal to the Valuation Office Agency. It is important for business owners to gather evidence to support their appeal, such as evidence of similar properties in the area or evidence of changes to the property that may affect its rateable value.
Overall, business rates on listed buildings can be a complex issue for business owners to navigate. However, with the right advice and support, business owners can ensure that they are not overpaying on their business rates and are taking advantage of any available reliefs and exemptions. By staying informed and seeking professional advice, business owners of listed buildings can manage their business rates effectively and focus on running a successful business in these historic and unique properties.