SeanCrowley Posted December 21, 2020 Share Posted December 21, 2020 Hello, Selfbuild newbie here, so please forgive what might be a stupid questions. We are looking to buy a bungalow which has planning permission to demolish and rebuild a house. That planning permission has a CIL liability notice. We are looking to get our own planning permission (as we are looking at a more modest build than what has been planned) - does that mean a new CIL liability notice will be issued to us for the new planning permission (and the old CIL liability will simply fall away?) Link to comment Share on other sites More sharing options...
Temp Posted December 21, 2020 Share Posted December 21, 2020 Welcome to the forum! Yes. The new planning grant will come with a new CIL liability. The CIL liability only takes effect when you start implementing the Planning Grant. So there is no liability for the old one UNLESS the current owner has already started implementing it. You might suggest your solicitor ask the seller to confirm that it hasn't in writing. I mention it because "starting" is sometimes done to preserve an old Planning Grant that is about to expire. Once you have started a Planning Grant normally lasts forever. How long has it got left? Ideally you want at least a year to give time to get your new application approved before the old one expires. If you are building the house to live in yourself you can apply for an exemption from the CIL however it is extremely important to follow the process for claiming the exemption to the letter using the right forms because if you don't you can find yourself liable for it with no way back. Do not start any work on site untill you have confirmation that the exemption application has been processed. Some people have been caught out by letters from the council saying that as self builders they will be exempt. That's true but ONLY if you formally claim the exemption. The process is detailed at the top of Form 7 here (in the arrows). https://www.planningportal.co.uk/info/200136/policy_and_legislation/70/community_infrastructure_levy/5 Note that you must live there as your principle residence for 3 years after completion as well. 1 1 Link to comment Share on other sites More sharing options...
newhome Posted December 21, 2020 Share Posted December 21, 2020 If you are a self builder and intend to live in the property for 3 years after it is completed you can apply for a CIL exemption anyway. Do not start ANY work on site however before you have the exemption paperwork submitted and confirmed at the appropriate point (there are several forms so ensure that you submit each one at exactly the right time or you become liable for the whole lot). Link to comment Share on other sites More sharing options...
Temp Posted December 21, 2020 Share Posted December 21, 2020 As its a knock down and rebuild you can also reclaim a lot of VAT. Sadly the rules for that can be tricky. Some things should be zero rated to you so you don't pay VAT in the first place. An example of that would be demolition services. In general: Services/labour should be zero rated (so nothing to reclaim). Materials are standard rated (and you reclaim it). "Supply and fit" should be zero rated for both elements. If you get a quote for services that says inc VAT ask for a requote as its a new build. Any problems come back here for advice. Link to comment Share on other sites More sharing options...
newhome Posted December 21, 2020 Share Posted December 21, 2020 A note of caution re CIL because it’s really rigid. Examples of where full liability has to be assumed include: Self builder died before he had occupied the house for 3 years - council claimed CIL liability from the estate Developer sold plot after an access was made to the plot - self builder who purchased it was denied an exemption as development was judged to have started. Developer gained planning permission for several plots under the same planning permission. First plot was sold to a self builder and building commenced after a CIL exemption was granted. Other plots were denied self build exemptions as the development was deemed to have started. The way round that is to apply for phasing within the PP or ensure that there are separate permissions for each plot. Tis a minefield ... 2 Link to comment Share on other sites More sharing options...
SeanCrowley Posted December 22, 2020 Author Share Posted December 22, 2020 Wow I had no idea it was such a minefield! Thanks so much for all the incredibly helpful answers!! Link to comment Share on other sites More sharing options...
Faz Posted December 23, 2020 Share Posted December 23, 2020 You have to make sure you follow the process to the letter. Form 2 Assumption of Liability followed by the Form 7 Pt 1 self build exemption. Then you have to serve a Form 6 Notice of Commencement before you start works followed by the Form 7 Pt 2 once you are done. Failing to serve the Form 6 before commencement invalidates the exemption. The CIL exemption on mine is worth north of £35k so it is important to get it right! Link to comment Share on other sites More sharing options...
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