CIL Relief and Exemptions
Development which creates under 100sqm of new floorspace and does not result in an annex or dwelling is not CIL liable. You will still be required to fill in the CIL Form 1 and Form 2 as a validation requirement.
Other forms of development may also be eligible for exemption from the CIL Charge. Exemption can be claimed at any point between submission of the application and commencement of development, but you cannot claim for relief after commencement of works.
Examples of development which may be eligible for an exemption include:
- Some developments by charitable organisations and social housing providers (Please see our CIL Low-cost Market Housing Policy).
- Developments by individuals creating new dwellings (Self Build Dwelling)
- Developments to a persons sole or main dwelling such as extensions and annexes (Self Build Extension/Annex)
Considerable detail is provided on the www.gov.uk website.
Exemptions from the charge are not automatic and must be claimed for by submitting a relief claim prior to commencement of the development. All exemption forms can be found on the Planning Portal.
All CIL charges and any relief granted is registered as a Land Charge. Providing no Disqualifying Event has occurred, restrictions placed on the use and sale of the property will be removed in the following periods of time:
- Residential annexes and Self-Build housing: 3 years beginning with the date of the completion certificate relating to the annex or dwelling.
- Residential Extensions: 7 years beginning with the date on which the extension is commenced.
- Social Housing: 7 years beginning with the date on which the dwelling is first let.
A Disqualifying Event includes but is not limited to:
- The sale of a new build dwelling
- Use of the main dwelling for any purpose other than as a single dwelling
- The letting of residential annex, including for use as holiday accommodation and Airbnb.
- The sale of residential annex separately to the main dwelling.
It is your responsibility to ensure you understand all of the disqualifying events associated with your type of exemption / relief. If a Disqualifying Event occurs, the relevant party will be liable to pay the CIL liability and may receive a further penalty.