CIL exemptions and relief

Self-build exemption guidance for claimants

‘Self-build’ for the purposes of CIL exemption is defined as all homes built or commissioned by individuals or groups of individuals for their own use, either by building the home on their own or working with builders.  

This guidance has been produced by Runnymede Borough Council (RBC) to assist in the self-build relief process. It describes what RBC requires to be submitted (and acknowledged) at each step and when, and clearly describes the potential penalties caused by not following each step correctly. 

Applying for a self-build exemption is a five-step process. All self-build claimants must follow all of the steps in order to comply with CIL legislation and obtain a self-build exemption from RBC.

This process is governed by legislation: the Community Infrastructure Levy Regulations 2010 (as amended) – known as the ‘CIL Regulations’. For ease of interpretation, the following guidance does not quote the CIL Regulations directly. Claimants are therefore strongly advised to consult the CIL Regulations for full details, and the Government’s Planning Practice Guidance signposts the relevant regulations for self-build exemption purposes.

Claimants may wish to seek independent advice on the implications of Self-Build Exemptions and CIL.

Applicants need to assume liability to pay CIL in relation to the development.

This must be done before any exemption can be claimed for.

What is required to be submitted/acknowledged and when

  • Form 2: Assumption of Liability
  • Post decision

Surcharges/Interest 

These will be payable if the Form 2 is not submitted prior to commencement on site and acknowledged. Claimants may wish to seek independent advice on the implications of assuming liability.

Process

Self-build exemptions cannot be processed or claimed until Form 2 is received and acknowledged by the Council. It must be received before any other forms in the following steps can be processed. A self-build exemption cannot be claimed if works have commenced on site

Submit a Self-Build Exemption Claim Form to the Collecting Authority (RBC). The exemption must be granted prior to the commencement of the development.

What is required to be submitted/acknowledged and when

  • Form 7: Self Build Exemption Claim Form - Part 1
  • Post decision

Surcharges/Interest 

These will be payable if the Form 7: Self Build Exemption Claim Form - Part 1 is not submitted prior to commencement on site and acknowledged.

Process

Self-build exemptions cannot be processed/claimed until this form is received and acknowledged by Council. It must be received before works have commenced on site.

Non-submission (and subsequent acknowledgement by RBC) of this form prior to commencement will mean you are unable to claim a self-build exemption later, and you will be required to pay the full chargeable amount of CIL upon commencement

A Commencement Notice must be received by the Collecting Authority prior to the commencement of the development.

What is required to be submitted/acknowledged and when

  • Form 6: Commencement Notice
  • Prior to any works commencing on site

Surcharges/Interest

These will be payable if the Form 6: Commencement Notice is not submitted prior to commencement on site and acknowledged.

Process

This notice must be received by the Collecting Authority prior to commencing development. Failure to do so will result in you losing the ability to pay the levy in instalments and you will also incur a surcharges and late payment interest.

Further Guidance on the Self Build Exemption Process

  • Guidance on submitting Form 6: Commencement Notice
    This notice must be received by the Collecting Authority prior to commencing your development. Failure to do so may result in you losing the ability to pay the levy in instalments and you may also incur a surcharge.
  • Please note the following if you have obtained, or intend to obtain, an exemption or relief from the levy:
    If you have received an exemption from the levy, failure to submit this form, and for it to be received by the Collecting Authority, prior to commencing your development will result in a surcharge being applied by the collecting authority equal to 20% of the notional chargeable amount or £2,500, whichever is the lower amount. Failure to submit this form and information will result in a disqualifying event occurring and loss of any exemption eg. self-build relief.

Part 2 of the Self-Build Exemption Claim Form and supporting evidence must be submitted to the Collecting Authority within 6 months of the date of the Compliance Certificate.

What is required to be submitted/acknowledged and when

  • Form 7: Self Build Exemption Claim Form - Part 2
  • To be submitted within 6 months of completing the self-build development

Penalties incurred if CIL statutory requirements are not followed

Claimants should be aware that following the completion of the self-build development, they are required to submit evidence of eligibility. 

Non submission (and subsequent acknowlegement by RBC) of this form and supporting evidence within 6 months of completion could mean the self-build relief is withdrawn you are liable to pay the full chargeable amount plus any surcharges and late payment interest incurred.

A self-build exemption is revoked if a disqualifying event occurs during the period of 3 years begininng with the date of the Compliance Certificate issued by the Building Inspector. A disqualifying event includes: 

  • any change in relation to the self-build housing or self-build communal development such that it ceases to meet the criteria set out in regulations
  • failure to comply with the evidence requirements on completion
  • the letting out of a whole dwelling or building that is self-build housing or self-build communal development; or
  • the sale of the self-build housing or self-build communal development

The Charging Authority must be notified of these events in writing within 14 days, or surcharge/interest will become payable on top of the full chargeable amount.