CIL exemption
You can apply for exemption from community infrastructure levy (CIL) payments if you are building or commissioning your own home, residential extension or residential annex.
To claim a self-build exemption for a whole house or residential annex, you must own the property and live in it as owner-occupier for a minimum of three years following completion.
If the house is sold or let within three years of the completion date, the CIL will become due for payment.
There are three types of self-build exemption:
- self-build exemption - for a whole house
- self-build exemption - for a residential annex
- self-build exemption - for a residential extension
Whole house
You can apply for exemption from CIL if you are building your own home, and intend to live in it as the owner-occupier.
To make a claim, you must first:
- assume liability to pay CIL.
- certify that the scheme will meet the criteria to qualify as self-build development (using form 7 self build exemption claim whole house Part 1), this must be done before you commence.
- submit a commencement notice, before development commences.
- within six months of completion, send us evidence to confirm the project is self-build (using form 7 self build exemption claim whole house Part 2).
Within six months of the date of the completion certificate, you must supply further supporting information as detailed on CIL Form 7 Self Build Exemption Claim Form Part 2. This provides the evidence to confirm the project is self-build. You should ensure you can provide all the information required by Part 2, however, if you are unable to provide certain documents please let us know.
The evidence must be comprised of:
- proof of the date of completion (building completion notice, compliance certificate).
- proof of ownership (a copy of the title deeds).
- proof of occupation as your main residence (council tax certificate, utility bills, bank statement, electoral roll).
In addition, you must also provide a copy of one of the following:
- an approved claim from HMRC under VAT431C – VAT refunds for DIY house builders.
- specialist self-build warranty.
- approved self-build mortgage from a bank or building society.
The self-build exemption claim forms (form 7, part 1 and 2) can be found on the Planning Portal.
Full details of what is required can be found on the forms. If this evidence is not submitted to us within the six month time period, the full levy charge becomes payable.
Disqualifying events
Self-build whole house exemption is revoked if one of the following disqualifying events occurs:
- any change in relation to the self-build housing or self-build communal development such that it ceases to meet the criteria set out in regulations;
- failure to comply with the evidence requirements on completion;
- the letting out of a whole dwelling or building that is self-build housing or self-build communal development within three years of the completion ; or
- the sale of the self-build housing or self-build communal development within three years of the completion.
Residential extension
If the new build floorspace of your residential extension is 100sqm or more after making deductions for existing floor space that is to be demolished, then you will be liable for CIL. Residential extensions below 100sqm are already exempt from the levy under the minor development exemption.
You can apply for exemption from CIL if you are building a residential extension. You must have a material interest in the main dwelling (own or have a leasehold of seven or more years). Any extension must be an enlargement to the main dwelling.
Claims for a self-build exemption for a residential extension should be submitted on Form 9: Self Build Residential Extension Exemption Claim Form. The form specifies what additional information should accompany the claim.
The residential extension exemption claim form can be found on the Planning Portal.
You must submit an assumption of liability notice and a commencement notice before starting any work, otherwise the full amount of CIL will be payable. Both forms can be found on the Planning Portal.
Residential annex
You can apply for exemption from CIL if you are building a residential annex of any size. You must have a material interest in the main dwelling (own or have a leasehold of seven years or more) and use the house as your main residence for three years after completion to obtain exemption. Any annexes must be built within the curtilage of the main residence and any extensions must be an enlargement to the main dwelling.
Claims for self-build residential annex exemption should be submitted on CIL form 8 - self build residential annex exemption claim form, which can be found on the Planning Portal.
A residential annex ceases to qualify for an exemption if any of the following disqualifying events occur within 3 years of completion:
- the main house is used for any purpose other than as a single dwelling;
- the annex is let; or
- either the main residence, or the annex, is sold separately from the other
Important notes
It is important that you do not commence development until you have submitted your application for exemption and you have received notice from us with a decision. If you start works on site before claiming exemption, your application for exemption will be refused.
If your CIL liability notice, or revised CIL liability notice (if issued), was issued prior to 1 September 2019 and you do not submit a commencement notice before starting works, you will lose your right to claim exemption and the full CIL will be due.
If your CIL liability notice, or revised CIL liability notice, was issued on or after 1 September 2019 and you do not submit a commencement notice before starting works, you will pay a surcharge of up to £2,500.00. If you have been granted CIL extension exemption, no commencement notice is required to be submitted.
If you fail to submit the correct evidence on completion, or within six months of completion, then we will charge the full amount of CIL.
If you receive exemption, and then sell, or rent out, your home within three years of the house being completed, we will charge you the full CIL amount. CIL is registered as a land charge and if any of these disqualifying events occur within three years, we will revoke exemptions and the levy will then be due.
We can also impose surcharges, in addition to the full CIL charge.
Disqualifying events
Where relief is applied, the CIL chargeable amount, and amount of relief granted, will be kept on the land charges register for three years following completion.
If a disqualifying event occurs, you must notify us in writing within 14 days. If this is not done, a surcharge will be applied in addition to the levy. A copy of the notification must be sent to all owners material interests in the relevant land. Where the necessary evidence is not supplied on completion, we will give you at least 28 days to submit the forms and evidence before taking further action.
Definition of completion
Completion is defined as the issuing of a compliance certificate under Regulation 16 of the Building Regulations 2010 (completion certificate) or Section 51 of the Building Act 1984 (final certificate).
Appeal
You have the right to appeal against exemption not being granted under Regulation 116A and 116B. Appeals should be made to the Valuation Office Agency. Further information can be found through CIL Appeals.
State aid
Self-build exemptions cannot be granted if they would constitute a notifiable state aid.