CIL exemption on LTD

[Bird]

I bought a city centre small commercial building to convert into one residence.  It was purchased within a ltd company. I notice that a CIL exemption can apply if it is a self build, but details seem scarce.  Is there any reason a CIL exemption application might be rejected if the property were purchased in a LTD?

[SBMS]

2 hours ago, Bird said:

I bought a city centre small commercial building to convert into one residence.  It was purchased within a ltd company. I notice that a CIL exemption can apply if it is a self build, but details seem scarce.  Is there any reason a CIL exemption application might be rejected if the property were purchased in a LTD?

I think you’ll struggle. The self build exemption specifically states

 

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.

 

In this instance YOU don’t own the property. This is why you are required to submit title deeds at completion to prove you own the property. A limited company owning it doesn’t pass this test, I suspect they would reject your application. 

[nod]

Haven’t read the other answers But no chance I nearly lost ours because I wanted to start both plots 

Which in there eyes made me a developer 

[SBMS]

5 minutes ago, nod said:

Haven’t read the other answers But no chance I nearly lost ours because I wanted to start both plots 

Which in there eyes made me a developer 

I know someone whose husband died and because he didn’t put his wife’s name on the application they’re now chasing for CIL because he hasn’t lived in the house for 3 years. Outrageous. 

[nod]

1 hour ago, SBMS said:

I know someone whose husband died and because he didn’t put his wife’s name on the application they’re now chasing for CIL because he hasn’t lived in the house for 3 years. Outrageous. 

The two times I’ve contacted the Cil department They’ve been very good 

and clear 

If you intend to live in the property are your main residence You qualify for Cil relief 

I nearly fell off my seat when asked for 48 k within 30 days of breaking ground But sort of see where they are coming from 

We started our build with 9 months still to run on our previous build 

[Bird]

T

10 hours ago, nod said:

I nearly fell off my seat when asked for 48 k within 30 days of breaking ground But sort of see where they are coming from 

30 days? In this FAQ it says it is payable within 60 days https://www.planninggeek.co.uk/planning/cil/cil-faq/.  They weren't asking you to pay within 30, just started asking, right?

[nod]

43 minutes ago, Bird said:

T

30 days? In this FAQ it says it is payable within 60 days https://www.planninggeek.co.uk/planning/cil/cil-faq/.  They weren't asking you to pay within 30, just started asking, right?

Right 😂

[Bird]

18 hours ago, SBMS said:

I think you’ll struggle. The self build exemption specifically states

 

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.

 

In this instance YOU don’t own the property. This is why you are required to submit title deeds at completion to prove you own the property. A limited company owning it doesn’t pass this test, I suspect they would reject your application. 

Thanks for the comment.

My next option is to claim relief, then.  As it was used commercially before purchase, it seems feasible to claim relief due to its previous use.

 

Section 4 of https://www.planninggeek.co.uk/planning/cil/cil-faq/ says relief is possible if

Quote

Involves only change of use, conversion or subdivision of, or creation of mezzanine floors within a building which has been in lawful continuous use for at least 6 months in the 36 months prior to the development being permitted and does not create any new build floorspace;

 

This is the case here, but I will contact my council to see if this is a releif they offer. I know counciles have discretion over some of the reliefs listed in the regulations.  Assuming they do allow it to be claimed, I would assume they could simply check to to see if business rates were being paid, rather than me needing to track down a previous owner and ask for utility bills or some other proof of occupancy 5 years ago.

 

 

[G and J]

Your LA maybe different, but in our case they would not use their own systems (in this case domestic rates) to verify previous occupation.....it's worth asking sooner rather than later

[DevilDamo]

You would need to deal with the “Transfer of Assumed Liability” first.

[Bird]

On 23/11/2024 at 09:01, G and J said:

Your LA maybe different, but in our case they would not use their own systems (in this case domestic rates) to verify previous occupation.....it's worth asking sooner rather than later

They simply said CIL form 5 must be submitted. This form includes a checklist with one point being "Photographic evidence of buildings in use on the relevant land".  This may be tricky to obtain.

[SBMS]

2 hours ago, Bird said:

They simply said CIL form 5 must be submitted. This form includes a checklist with one point being "Photographic evidence of buildings in use on the relevant land".  This may be tricky to obtain.

Yes. We had 8 buildings and couldn’t evidence one of the buildings (stables) being used for its ‘intended purpose’. Was easier just to exclude it as we were claiming self build exemption anyway. But the council are definitely all over it. 

[Bird]

21 hours ago, SBMS said:

Yes. We had 8 buildings and couldn’t evidence one of the buildings (stables) being used for its ‘intended purpose’. Was easier just to exclude it as we were claiming self build exemption anyway. But the council are definitely all over it. 

I was lucky enough to find a historic street view image from the relevant period showing two employees, keys in hand, locking up the premises!  The council has confirmed it is acceptable evidence of being in use.

[Temp]

I don't think you can use the self build VAT reclaim either but you probably know that.

[Bird]

13 hours ago, Temp said:

I don't think you can use the self build VAT reclaim either but you probably know that.

Yes, I think you're right. But a reduced rate of 5% should be possible as a conversion from commercial to residential.

[Temp]

5 hours ago, Bird said:

Yes, I think you're right. But a reduced rate of 5% should be possible as a conversion from commercial to residential.

Self builders can reclaim that 5%.

[Bird]

The council has now confirmed a CIL liability of £0 as there is no new internal floorspace created in the conversion.  That's £22,000 i don't have to pay!