I want to build my own home - self build - do I have to pay the CIL
Self-build homes are exempt from the CIL, subject to various criteria. The category of ‘self-build’ applies to anyone who is building their own home or has commissioned a home from a contractor, house builder or sub-contractor (this includes community group self-build projects). In order to claim exemption from the CIL the owner must submit CIL Form 7 - SB1-1 Self Build Exemption Claim Form Part 1 and have it agreed by the Council before commencement on site. The Council will agree to waive the amount of CIL so that you don’t have to pay any CIL on your self-build house.
CIL Form 8 - SB1-2 Self Build Exemption Claim Form Part 2 must then be submitted within 6 months of completing the dwelling, including additional supporting evidence to confirm that the project is self-build. Completion is defined as the issuing of a compliance certificate for this development under either Regulation 17 of the Building Regulations 2010 or Section 51 of the Building Act 1984. If the evidence is not submitted to the Council within the 6 month time period, the full levy charge becomes payable. This evidence must comprise:
• Proof of the date of completion - a copy of the building completion or compliance certificate for the home issued by Building Control.
• Proof of ownership – a copy of the title deeds (freehold or leasehold).
• Proof of occupation of the dwelling as the applicant’s principal residence – a Council Tax certificate - and two further proofs e.g. a bank statement or confirmation that the applicant is on the local electoral roll.
• A copy of one of the following:
- An approved claim from HM Revenue and Customs under ‘VAT431C: VAT refunds for DIY housebuilders’; or
- A Specialist Self Build Warranty; or
- An approved Self Build Mortgage from a bank or building society.
You must then own the property and occupy it as your principal residence for a minimum of three years after the work is completed. If within the first three years you want to sell or rent out the property or stop using it as your main dwelling, you can do so but must notify the Council within 14 days of the sale/rent. The amount of the CIL which was originally waived is then payable in full. Failure to notify the Council will result in enforcement action such as payment of a surcharge.