Building tax removed on self-build and extension planning permissions

Community Infrastructure Levy (CIL) is a tax on development imposed by some councils when planning permission is given. Changes came into effect on 24 February taking self-build houses and domestic annexes and extensions out of the scope of the tax.
Depending on the level of charge set by the council, this could cut many thousands of pounds off the cost of self-built houses. According to the government, this is part of its; ‘determination to boost housing supply and help aspiring self-builders get their home off the ground’.

To qualify, a house has to be built or commissioned for the builder’s own occupation and lived in for at least three years. The exemption only applies to houses built from now on. There are various procedural requirements to follow before and after the construction and documents to produce to prove it is a self build.

The charge already applied only to extensions of over 100 sq metres. Larger extensions are now exempt where they are to a self builder’s principal residence and not an additional dwelling. No charge will be made on annexes in the curtilage of a house and comprise one dwelling, although the occupier does not have to be a family member. The exemption has to be claimed before commencing development.

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