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Community Infrastructure Levy and self-builders

by on May 15, 2017

While the UK has one of the lowest rates of self-build in Europe, government incentives and media attention have increased levels of activity and interest in recent years. We take a look at Community Infrastructure Levy (CIL) and responsibilities for self-builders.

What is the Community Infrastructure Levy?

The Community Infrastructure Levy is a planning charge introduced by the Planning Act 2008 as a tool for local authorities in England and Wales. Monies from CIL can help local authorities deliver infrastructure to support the development of their area, such as travel improvements and schools. CIL came into force on 6 April 2010 through the Community Infrastructure Levy Regulations 2010.

Who has to pay CIL?

Most new development which creates net additional floor space of 100 square metres or more, or creates a new dwelling, is potentially liable for the levy. This includes development permitted by a ‘general consent’.

If your local planning authority has chosen to set a fee in its area, you may be liable for a charge under CIL. In October 2016, 130 authorities were charging CIL (not including the Mayor of London and the London Legacy Development Corporation), according to a report by the CIL Review Team. A further 88 were working towards adopting a CIL.

Your responsibilities for CIL as a self-builder

It is vital that you check the most up-to-date authoritative guidance on the Community Infrastructure Levy before carrying out your project. If you are unsure of anything, contact your local authority planning department.

In order for the authorities to calculate CIL liability, you will need to fill out the forms below. These should be submitted to your local planning authority when submitting a planning application.

Once planning permission is granted, the authorities will issue a levy liability notice. You then need to submit an Assumption of Liability form (Form 1: Assumption of Liability) to the collecting authority. If you want to withdraw or transfer your liability you must complete and submit either Form 3: Withdrawal of Assumption of Liability or Form 4: Transfer of Liability to the collecting authority.

Paying the Community Infrastructure Levy

  • If you are required to pay CIL, your local authority will inform you of the cost by sending you a Demand Notice.
  • If developments, and the levy, are above a certain size your local authority may allow you to pay in instalments.
  • Once all requirements are met, payment is due within 60 days of the commencement of development, or as set out in the payment instalments policy set by the authority.
  • If you fail to pay the levy, you may be charged a penalty which could be payable immediately.
  • You are entitled to appeal the charge within 60 days of your local authority issuing the liability notice.

Exemptions to CIL for self-builders

Some developments, including self-build projects, may be eligible for relief or exemption from CIL. It is important to note that strict requirements apply to the timing of the exemption process. In most cases a Commencement Notice (Form 6) must also be served prior to the commencement of development, in order for the exemption to apply.

Claims for a self-build exemption relating to a whole house should be submitted on Form 7: Self-Build Exemption Claim Form Part 1 and followed by further supporting information, when the development is finished, on Form 7: Self-Build Exemption Claim Form Part 2. This must be submitted within six months of completing the dwelling.

Claims for a self build exemption relating to a residential annex should be submitted on Form 8: Self-Build Residential Annex Exemption Claim Form.

Claims for a self build exemption relating to a residential extension should be submitted on Form 9: Self-Build Residential Extension Exemption Claim Form.

Please note, where an exemption has been approved by the collecting authority the applicant becomes liable for the full amount if they fail to serve a commencement notice before starting the development. Find out about CIL appeals on gov.uk.

Need more information about self-build projects? Access our free guide.

From → CIL, Uncategorized

2 Comments
  1. Good afternoon
    As a builder and member of the FMB, why don’t the government help SME,s by contacting reputable firms and giving guidance and funds to help generate self builds and increase affordable homes, let us by help from the government refurbish empty properties. This will help SME’s like me to run a business more efficiently, we are year after year struggling to compete with rouge traders and the fat cats that get large pots of money from the government to build hundreds of homes, help us help the country small businesses one small company cannot make a great change but a vast number of small companies can.

  2. CIL rules are not clear. If a building is demolished and rebuilt to a similar size (less then 100sqm more) is it a ‘new dwelling’ or just a ‘new building’. The principle must be that a net increase in housing supply warrants a contribution to infrastructure, but a rebuild does not. So, is CIL applicable to rebuilds or not?

Please give us your feedback but we won’t publish any comments that are not constructive or that criticise any individual, any named business or any local authority. Please note, all comments will be moderated before being published.

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