Exemption for self build properties

The following exemptions are available to:

  • anybody who is building their own home or have commissioned a home from a contractor, house builder or sub-contractor. Individuals claiming the exemption must own the property and occupy the property as their sole or main residence
  • community group self build projects also qualify for the exemption where they meet the required criteria

You can apply for a self build exemption at any time, as long as the development has not commenced.

The chargeable amount (the levy that would have been payable if the exemption had not been granted) will be registered as a ‘local land charge’ on self-build houses for three years from completion.

Self build exemptions can be withdrawn if a disqualifying event occurs.

How to claim an exemption for whole houses

Applicants wishing to claim must take two steps before commencing their development.

Firstly, you must assume the liability to pay the CIL levy in relation to the development. This is done by completing the Assumption of Liability form. If liability has already been assumed by another person, you must complete a Transfer of Assumed Liability form and submit this to the council.

Secondly, you must certify that the scheme will meet the criteria to qualify as a ‘self build’ development. You must submit a Self Build Exemption Claim Form (Form 7 - Part 1) to the council. At this stage, the applicant must confrim that they understand:

  • the claim for self build exemption will lapse where development commences prior to the council informing them of their decision    
  • if the CIL Liability notice was issued prior to 1 September 2019, the claim for exemption will lapse if you fail to provide the council with a Commencement Notice prior to commencement of the development
  • if the CIL Liability notice was issued after 1 September 2019, a surcharge equal to 20% of the CIL charge or £2500, whichever is the lower, will be payable if you fail to provide the council with a Commencement Notice prior to commencement of the development
  • they will be liable for the full CIL charge if you do not complete and provide Part 2 of the Self Build Exemption claim form (Form 7) along with the requested supporting information within six months of the Compliance Certificate being issued
  • the meaning of disqualified event for the exemption and where a disqualifying event occurs before or after commencement you will inform the council within 14 days

You can obtain the relevant forms from the Planning Portal.

Evidence required on completion

You will need to provide copies of the following items:

  • Compliance certificate for this development issued under either: regulation 17 (completion certificates) of the Building Regulations 2010 or Section 51 of the Building Act 1984 (final certificates)
  • Title deeds of the property to which this exemption relates (including the plan referred to in the title deeds)
  • Council Tax bill or certificate

You will also need to supply copies of two of the following items showing your name and the address of the property:

  • utility bill
  • bank statement
  • local electoral roll registration   

You will also need to provide one of the following:

  • an approved claim from HM Revenue and Customs under VAT431: VAT refunds for DIY Housebuilders
  • proof of a specialist self build or custom build warranty for the development
  • proof of an approved self build or custom build mortgage from a bank or building society for your development 

What is a self build warranty?

A Self Build Warranty is a warranty and Certificate of Approval issued by a warranty provider, which provides a ‘latent defects insurance’ policy and which is accompanied by certified Stage Completion Certificate, issued to the owner/occupier of the home.

What is a self build mortgage?

A Self Build Mortgage is an approved mortgage arranged to purchase land and/or fund the cost of erecting a house where the loan funds are paid out to the owner/occupier in stages as the building works progress to completion.

Multi-unit schemes

For multi-unit schemes (for example, where a builder sells serviced plots or a community group works with a developer), applicants should consider applying for a phased planning permission, to allow each plot to be a separate chargeable development. This will prevent the charge being triggered for all plots within the wider development as soon as development commences on the first dwelling. This will also ensure that if a disqualifying event occurs affecting one unit, it does not trigger a requirement for all to repay the exemption. Schemes can be ‘phased’ for levy purposes even if they do not benefit from ‘outline’ planning permission.

Is self build communal development covered by this exemption?

Self build communal development benefits from the levy exemption if it is for the use of the occupants of more than one self build home. Such development may include, for example, shared facilities or guest accommodation. An exemption from the levy will not be granted to communal development for the use of the general public or for commercial development such as a retail unit.

How is the amount of exemption for self build communal development calculated?

The self build communal development exemption is calculated using the formula in Regulation 54A. The gross internal area of the communal development is apportioned to the individual self build units on the site, based on the gross internal floor space of the self build dwellings.

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