Business rates can be a costly expense for any business owner, but when it comes to listed buildings, the rules and regulations can be even more complex. Listed buildings are considered to be of historical or architectural significance, and as such, are protected by law. This protection can bring both benefits and challenges when it comes to business rates. In this article, we will explore how business rates are calculated on listed buildings and what business owners need to know in order to navigate this unique situation.
Listed buildings are categorized into three grades – Grade I, Grade II*, and Grade II. These grades are based on the historical or architectural importance of the building, with Grade I being the most significant. business rates on listed buildings are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). The rateable value is then multiplied by the multiplier set by the government to calculate the amount of business rates owed.
One important factor to consider when it comes to business rates on listed buildings is that certain types of alterations or improvements may be restricted or require special permissions. This can make it more difficult for business owners to make changes to their property in order to increase its value and potentially lower their business rates. It is important for business owners to consult with local planning authorities and conservation officers before making any alterations to a listed building in order to ensure compliance with the law.
One potential benefit of owning a listed building is that in some cases, business owners may be eligible for relief on their business rates. This relief is typically given to properties that are considered to be of special interest and have a rateable value of less than £12,000. The amount of relief can vary depending on the grade of the building and the specific circumstances of the business owner. It is recommended that business owners speak to their local council to see if they qualify for any relief on their business rates.
It is also important to note that business rates on listed buildings can be affected by changes in the surrounding area. If a property becomes more desirable due to improvements in the area, the rateable value of the building may increase, resulting in higher business rates. Conversely, if the area becomes less desirable, the rateable value may decrease, leading to lower business rates. Business owners should stay informed about developments in their local area in order to anticipate any changes in their business rates.
In some cases, business owners may find that their business rates on a listed building are significantly higher than on a non-listed property of similar size and location. This can be frustrating for business owners who feel that they are being unfairly penalized for owning a listed building. It is important to remember that the purpose of listing buildings is to protect their historical and architectural significance, and this protection may come at a cost in terms of higher business rates.
Navigating the complex world of business rates on listed buildings can be challenging, but with the right information and guidance, business owners can manage this expense effectively. It is important to consult with professionals who have experience in dealing with listed buildings and business rates in order to ensure compliance with the law and maximize any available relief. By staying informed and proactive, business owners can successfully navigate the world of business rates on listed buildings and continue to thrive in their unique properties.