CIL Self-Build Exemption

What is Community Infrastructure Levy?

Community Infrastructure Levy (CIL) is a planning charge that local authorities in England and Wales can impose on new development to fund local infrastructure - roads, schools, parks, community facilities. Not all councils charge CIL, and rates vary enormously - from zero to over £1,000 per square metre in parts of London and the South East.

CIL is calculated based on the floor area of the new dwelling and the council's adopted CIL charging schedule. For a 120m² house in a high-CIL area, the charge could easily reach £60,000-100,000. In a low-CIL area it may be a few thousand pounds, and in areas with no adopted CIL it is zero.

Who qualifies for the self-build exemption?

The self-build exemption is available to individuals who are building or commissioning a home for their own occupation. The key criteria are:

• The dwelling must be for your own use as your principal residence
• You must occupy the dwelling for at least three years after completion (or repay the exempted CIL if you sell or cease to occupy it within three years)
• The application must be made before any development starts
• The exemption applies to the whole dwelling, not just a portion of it

Custom build projects (where you commission a developer or builder to build the home but specify the design) may also qualify - check with your local authority.

How to apply

The process is straightforward and free:

1. Check whether CIL applies in your area. Ask your local planning authority or search online for their CIL charging schedule. If the authority has not adopted a CIL charging schedule, no charge applies and no exemption is needed.
2. Submit Form 7 (Self Build Exemption Claim - Part 1) to your local planning authority. This must be submitted before development commences. The form is available from your council's planning portal.
3. Receive acknowledgement. The council should issue a written acknowledgement. Keep this safely - it is your evidence that the exemption was properly applied for before work started.
4. Start work. Once Part 1 is acknowledged, you can start work. The exemption is not yet confirmed - it is conditional on you completing Part 2.
5. Submit Form 7 (Part 2) within six months of completing the dwelling. This confirms completion and triggers the formal grant of the exemption.

The three-year occupation requirement

Once the exemption is granted, you must occupy the property as your principal home for at least three years from the date of completion. If you sell the property, stop living in it, or use it other than as your principal home within that three-year period, the council can demand repayment of the full CIL amount that was exempted - plus interest.

The three-year clock starts from the date of the Completion Certificate or the date you move in, whichever is later. Make sure you are clear on the start date and set a diary reminder.

Scotland and Northern Ireland

CIL does not apply in Scotland or Northern Ireland. Scotland uses Section 75 planning obligations (the equivalent of Section 106 agreements in England) to collect developer contributions. These are negotiated as part of the planning process and may or may not apply to your project depending on its scale and location.

What if the council charges CIL despite an exemption application?

If you receive a CIL demand notice after properly submitting your exemption claim, contact the council's CIL officer immediately. Keep all correspondence and acknowledgement letters. If the issue cannot be resolved administratively, you have a right of appeal to the Planning Inspectorate.

Do not simply ignore a CIL demand even if you believe you are exempt. The enforcement provisions in CIL regulations are robust - unpaid CIL attracts surcharges and can become a charge on the land.

CIL and Affordable Housing contributions

CIL is separate from Section 106 affordable housing contributions, which are also sometimes attached to residential planning permissions. Self-builders are not automatically exempt from Section 106 obligations - these are negotiated on a case-by-case basis as part of the planning process. Check your planning decision notice and discuss any Section 106 requirements with your solicitor before exchanging on the land.