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Plans resubmitted for our bungalow extension our architects just emailed and I'm just venting. Sixteen grand!!!!

 

Response below from our architects...

 

Despite our best efforts to reduce the habitable floorspace of the proposed extension to under 100m sq so as to avoid CIL payments, they have now included the garage space in their calculations as the rules have recently changed in October of this year.
 
Based on their new calculations, your new proposal would potentially be liable for CIL (Community Infrastructure Levy) at a cost of £16,075.28 that being 138.58m2 at a cost of £116m/sq metre.
 
We have spent quite some time this afternoon trying to reconcile this for you and have the following plan:
 
1. Initially, we will apply for an exemption for you on the grounds that you are home owners and will continue to reside there. We will draw up the relevant forms for this and submit them tomorrow.
2. If this application for exemption is not accepted, we intend to withdraw the current application and resubmit the garage proposal at a later date under a separate application.  
This would incur a separate Planning fee but it would be another £250 rather than the exorbitant fee of £16 thousand pounds.

 

 

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5 minutes ago, BotusBuild said:

My architect is submitting the garage as a separate application for similar reasons as yours has suggested

 

3 minutes ago, canalsiderenovation said:

Yeah I've said to leave the garage until the house PP is approved. There is already an existing garage there anyway, albeit ramshackle and needing demolish but I'd rather leave it for now. So annoying.

We have two garage on our submission 

Fortunately it doesn’t Eder the Cil on a new build If it had I would have built the afterwards 16k is a lot of money 

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Thats odd. The updated guidance is quite clear that you can obtain a Self Build Exemption. I starting my planning application and looked into the revised guidance, which I have pasted below:

 

How does the self-build exemption work (for a whole new home)?

If the necessary qualification requirements are met and the application process is completed within required timescales, an exemption from the Community Infrastructure Levy will be available to anybody who is building their own home or has commissioned a home from a contractor, house builder or sub-contractor. Individuals benefiting from the exemption must own the property and occupy it as their principal residence for a minimum of 3 years after the work is completed.

Paragraph: 082 Reference ID: 25-082-20190901

Revision date: 01 09 2019

 

What are the specific requirements to qualify for a self-build exemption?

A self-build housing exemption is available to anyone who builds or commissions their own home for their own occupation. On completion, they must provide the requested supporting evidence, and the property must remain their principal residence for a minimum of 3 years.

If personal circumstances change and the applicant wants to dispose of the property before the 3-year occupancy limit expires, they must notify the charging authority and the levy then becomes payable in full. Failure to notify the charging authority will result in enforcement action against the applicant and surcharges will become payable. View more information on disqualifying events.

Full details are set out in regulations 54A, 54B, 54C and 54D as inserted by the 2014 Regulations. Regulation 54B was amended by the 2019 Regulations.

Paragraph: 086 Reference ID: 25-086-20190901

Revision date: 01 09 2019

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.......... just noticed you are doing an extension not a new self build.

 

You can still get an exemption, as per the below:

 

Exemptions for residential annexes and extensions

What are the criteria for obtaining an exemption for a residential annex or residential extension?

People who extend their own homes or erect residential annexes within the grounds of their own homes are exempt from the levy, provided that they meet the criteria laid down in regulations 42A and 42B (inserted by the 2014 Regulations and amended by the 2019 Regulations):

  • the main dwelling must be the person’s principal residence, and they must have a material interest in it (as defined in regulation 4(2));
  • residential annexes are exempt from the levy if they are built within the curtilage of the principal residence and comprise one new dwelling; and
  • residential extensions are exempt from the levy if they enlarge the principal residence and do not comprise an additional dwelling.

There is no requirement for the occupier of the annex to be related to the owner of the main dwelling, or to commit to staying there for a specified period. But letting the residential annex, or selling it separately from the main dwelling, within the 3-year claw-back period which commences from the date of the compliance certificate relating to the residential annex, will result in the exemption being withdrawn.

Residential extensions under 100 square metres, which are not part of a development which creates a new dwelling, are already exempt from the levy under the minor development exemption.

Paragraph: 049 Reference ID: 25-049-20190901

Revision date: 01 09 2019

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5 hours ago, Thedreamer said:

Your building 138m2 and you have to pay this charge, that's mental, surely this levy should only apply to developers or really expensive self builds.

 

We don't have this in Scotland(yet!) and I'm building 138m2 as well.

 

 

We are in the NW of England 

Our build was 284 plus two detached garages The charge would have been 13 k had we not had the Cil exemption 

Costs seem to vary 

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How come these charges seem to be applied differently by different authorities?

 

In what other industry does the government get to effectively use a windfall tax? Serious question they might exist. Because house prices are high everyone wants a piece of the cake

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1 hour ago, Oz07 said:

How come these charges seem to be applied differently by different authorities?

Maybe because it is, in effect, an upfront council tax payment.  Different councils charge different amounts.

We do get to vote our local councils in and out.

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You should be exempt BUT make sure you follow the exemption process to the letter or you can loose it.

 

The forms are here..

 

https://www.planningportal.co.uk/info/200136/policy_and_legislation/70/community_infrastructure_levy/5

 

I think you want form 8 not sure about others.

 

The key point is do not start any work on site until the paperwork is done.

Edited by Temp
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2 hours ago, Oz07 said:

How come these charges seem to be applied differently by different authorities?

 

In what other industry does the government get to effectively use a windfall tax? Serious question they might exist. Because house prices are high everyone wants a piece of the cake

 

CIL is (I would say) far less capricious / random than Section 106, and is calculated on a far more transparent formula. 

 

Not perfect, but probably an improvement.

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2 hours ago, Oz07 said:

How come these charges seem to be applied differently by different authorities?

 

Its called Localism.

 

The CIL is meant to replace other planning charges such as S106 agreements. Its intended to fund infrastructure projects like schools and roads that are needed to support new housing developments.

 

Councils draw up a list of projects needing funding over say five years, and estimate the floor area of houses that will be built over same period. They effectively divide one by the other to calculate the CIL. I once saw the spreadsheet my council drew up for their CIL scheme. 

 

Not all councils switched from S106 to the CIL straight away although the government introduced an incentive. They limited the number of S106 contributions that could be collected for the same thing. For example only 5 S106 contracts could be agreed to fund the same playground.

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  • 1 month later...

We got planning permission approved and our architects have had correspondence re the exemption.

 

Finally, we can proceed now with a view to getting a builder booked..... If we are still in a house with no heating or hot water by the end of the year kill me... Oh and did I mention bubble wrap on the windows is my latest attempt to keep us warm...

Screenshot_20200107-092648.png

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As i mentioned above, do not start work until the CIL exemption paperwork is done. Its a multi step process, miss a step and you loose the exemption and become liable to pay it. One bit of paper lost in the post or even lost by the council and you loose the exemption and become liable to pay it and a penalty! You need to be able to prove you have jumped through all the hoops.  I would not leave this to the Architect. 

 

Example: Man hit with £40,000 bill because he told the council he was starting work by email instead of using the right form!...

 

https://www.lexology.com/library/detail.aspx?g=ca104a53-d127-4442-b05e-1c01a0389058

 



Background

Mr Jones, a self-builder, obtained planning permission to build a detached house in Shropshire. The CIL liability was assessed at £36,861.43. He expected to benefit from the “Self-build” CIL exemption. He informed the Council’s planning department in an email that works would begin on 11 July 2015.

 

On 13 August 2015, the Council issued a demand notice for £39,361.43 on the basis that development had commenced without a Commencement Notice being served pursuant to the CIL Regulations. The amount included the full amount of CIL and a surcharge for failing to serve the notice.

 

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14 hours ago, Temp said:

As i mentioned above, do not start work until the CIL exemption paperwork is done. Its a multi step process, miss a step and you loose the exemption and become liable to pay it. One bit of paper lost in the post or even lost by the council and you loose the exemption and become liable to pay it and a penalty! You need to be able to prove you have jumped through all the hoops.  I would not leave this to the Architect. 

 

Example: Man hit with £40,000 bill because he told the council he was starting work by email instead of using the right form!...

 

https://www.lexology.com/library/detail.aspx?g=ca104a53-d127-4442-b05e-1c01a0389058

 

 

 

We are in Shropshire too! 

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