Conversion of agricultural buildings to holiday lets - CIL

[suffolkselfbuild]

Hi all

 

First post here - and first self build in general - so apologies for any 'stupid' questions or inadvertent rule breaking!

 

We have a plot of land with two small, redundant agricultural buildings that we would like to convert into holiday accommodation. We had a consent (lapsed in 2008) to do this and have recently approached the planning officer for some pre-app advice with a view to renewing the consent. 

 

The plot is outside the village envelope but the planning officer has indicated that an application to convert would likely be approved - however the development would likely be CIL liable and also subject to an 'environment mitigation' fee.

 

My questions are as follows:

 

- Is CIL definitely payable on conversion of agricultural buildings and, if so, does it apply when converting to holiday accommodation? I believe the answer is YES

- Our current proposal is for a 115 sq m development. If this were reduced to say 99 sq m, would CIL cease to be payable? Or do holiday lets count as dwellings and therefore it's still chargeable?

- If we were to split the land and apply for two separate consents (say 70 sq m each) would CIL be payable on each independently, on the total of the two or not at all?

 

Lastly, and a more general question - would we benefit more from sitting tight and awaiting the Gov's planning reform - or are the new regs likely to put us in a worse position? I have read various 'rumours' that CIL (or its equivalent) will be charegable as a % of GDV - with some sources estimating 20% provided the GDV is above a certain threshold. Whilst I know it is pure speculation at the moment, it would be nice to get a feel for whether it's best to 'sit tight' or 'press on' !

[Mr Punter]

I think you will get caught for CIL as if they were dwellings.

[LSB]

My understanding is that CIL exemption is only available for a dwelling that you plan to live in as a self builder for at least 3 years.

Holiday lets are businesses so it is payable.

 

But, others may be clearer on this.

 

[Temp]

@suffolkselfbuild Normally the CIL calculation deducts the floor area of existing buildings so on a conversion with no new building I don't think there is anything to pay. The proviso is that the building must have been in lawful use for 6 months beforehand. So not a retrospective application.

 

There is something funny with the way the 100sqm rule is applied if there 8s a mix of conversion and new. I believe if you did a 300sqm conversion AND a 99 sqm new building then the area used for the test to see if the CIL applies is 300+99= 399sqm. Then since that is over 100sqm the CIL has to be calculated. Its calculated on 399-300=99sqm. 

Edited November 17, 2021 by Temp

[Temp]

https://www.lbbd.gov.uk/sites/default/files/attachments/CIL-Collection-Frequently-Asked-Questions-2014.pdf

 

Development  will  potentially  not  be  liable  for  CIL  if  it:   •  Involves  only  change  of  use,  conversion  or  subdivision  of,  or  creation  of mezzanine  floors  within,  a  building  which  has  been  in  lawful  use  for  at  least six  months  in  the  three  years  prior  to  the  development  being  permitted  and does  not  create  any  new  build  floorspace .... continues...

[LSB]

I'm not sure about the existing buildings, we were exempt because of planning to live in it, but our ag barn is 240sqm and was liable for CIL.