CIL grace period on completion?

[Alan Ambrose]

OK so you're near the completion of your self-build and ready to move in. You've avoided the huge CIL levy payment by correcting filing the CIL self-build paperwork at the right time.

 

You put your old house on the market, expecting it to take anywhere between 3-12 months to complete as is normal.

 

But CIL doesn't allow you to claim the self-build exemption if you have two homes - which you will have from the moment you get BC final sign-off on your new one until you sell your old one. Strictly, 'you're breaking the rules'.

 

Is there any known provision for a grace period to allow for this practicality?

 

 

[nod]

You can hold back on BC sign off While still living in the newbuild 

[Alan Ambrose]

Ah so assuming you have no other pressing matters (e.g. mortgages) you could potentially be living in the new place, paying council tax etc, but hold off on the completion cert until your old place has sold? Often the question here on BH is ‘how quick can I get my cert…

[Thorfun]

2 hours ago, Alan Ambrose said:

Often the question here on BH is ‘how quick can I get my cert…

I asked my BCO this very question this week. He said about 14 days from final inspection if all the paperwork was in order

[newhome]

Surely if you declare that the new property is your principal private residence that should be enough? If you can’t own 2 homes then surely that would preclude anyone self building from applying for a CIL exemption if they have a holiday home or are even named in a trust that contains a dwelling? 

[Alan Ambrose]

>>> anyone self building from applying for a CIL exemption if they have a holiday home

 

Interesting question. I'm obviously trying to not fall accidentally foul of the rules as the penalty is large.

 

https://www.gov.uk/guidance/community-infrastructure-levy#para082

 

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.

 

Now it does say 'sole or main residence' in the actual act:

 

https://www.legislation.gov.uk/uksi/2010/948/regulation/54A

 

and the form to be submitted at the end is this:

 

https://ecab.planningportal.co.uk/uploads/1app/forms/form_7_self_build_part_2_exemption_claim.pdf

 

and says 'sole or main residence' again, so maybe having a holiday home or even a rental property isn't a problem.

 

But nothing about the period where you may have two homes temporarily while you're selling the old one.

[Temp]

Many people live in a rented house while self building. Technically they also have two residences. 

 

 

 

[Temp]

Is it clear that it has to be the three years immediately after completion? Could be any three years? Eg years 5 to 8 ? Not everyone moves in on BC completion day.

[Alan Ambrose]

Ah I just saw this - I just checked in the actual legislation, it says:

 

"clawback period” means— ... (b) in relation to the exemption for self-build housing, the period of period of three years beginning with the date of the compliance certificate" ... and ...

 

"compliance certificate” means a certificate given under ... — (a) regulation 17 (completion certificates) of the Building Regulations 2010"

 

So, 3 years after BC sign off.