Listed buildings are an important part of our cultural heritage, with their unique architecture and historical significance. Protecting these buildings is crucial for preserving our history and heritage, but it can also come with challenges for businesses that occupy them. One of the key challenges that businesses face when operating out of a listed building is the issue of business rates. In this article, we will explore the impact of business rates on listed buildings and what businesses can do to mitigate the costs.
Listed buildings are subject to business rates just like any other commercial property. However, there are some differences in how business rates are calculated for listed buildings compared to non-listed buildings. The rateable value of a building is determined by the Valuation Office Agency (VOA), based on factors such as the size and location of the property. For listed buildings, additional considerations are taken into account, such as the historical significance of the building and any restrictions on alterations or renovations.
One of the main factors that can affect the business rates on a listed building is the condition of the property. Listed buildings are often older and may require more maintenance and upkeep compared to newer buildings. This can impact the rateable value of the building and result in higher business rates for the owner or tenant. Additionally, restrictions on alterations or renovations can limit the ability of businesses to make improvements to the building, which can also impact the rateable value.
For businesses operating out of listed buildings, the higher business rates can pose a significant financial burden. In some cases, businesses may struggle to afford the rates and this can impact their profitability and viability. This is especially true for small businesses and independent retailers that may not have the resources to absorb the additional costs. As a result, some businesses may be forced to close or relocate to more affordable premises.
So, what can businesses do to mitigate the impact of business rates on listed buildings? One option is to apply for rate relief or exemption. Certain types of properties, including listed buildings, may be eligible for business rates relief or exemptions. For example, if a building is used for charitable purposes or is unoccupied, the owner may be entitled to a discount on their business rates. Businesses should check with their local council to see if they qualify for any relief schemes.
Another option for businesses is to challenge the rateable value of their property. If a business believes that the rateable value of their listed building is too high, they can appeal to the VOA to have it reassessed. This process can be complex and time-consuming, but it can result in a reduction in business rates if successful. Businesses should seek professional advice from a chartered surveyor or rating specialist to help them navigate the appeals process.
In addition to seeking relief or appealing the rateable value, businesses can also consider other ways to reduce their business rates. For example, investing in energy-efficient upgrades to the building can lower the property’s rateable value and result in lower business rates. Businesses can also look for ways to generate additional income from the property, such as renting out unused space or hosting events, to offset the costs of business rates.
Overall, business rates on listed buildings can be a significant challenge for businesses, but there are options available to help mitigate the costs. By exploring relief schemes, appealing the rateable value, and implementing cost-saving measures, businesses can better manage their business rates and continue to operate out of these important historical buildings. It is important for businesses to be proactive and seek professional advice to ensure they are taking full advantage of all available options to reduce their business rates on listed buildings.