Community Infrastructure Levy (CIL) HELP PLEASE

[Caroline]

We are self builders and have obtained permission to knock down a storage barn and build a new bungalow.  I completed the relevant forms, the LA received CIL form 2.  I just sent them form 6 (commencement) and 7 part 1 (self build) and they have come back with this, which I don't understand.  Can anyone throw light on it.  BTW the barn is 326 m2 the new build is 288 m2.
 

"I am writing to you regarding planning application 2025/143, if you wish to offset existing floorspace we would require evidence of lawful use, please see the below:

 

Demonstrating buildings in continuous lawful use

Regulation 40 of The Community Infrastructure Levy Regulations 2010 allows for existing floor space which has been in continuous lawful use for at least six months within the three year period preceding development being permitted can be used as deductible floor area in the calculation of the CIL liability.

 

The applicant must provide evidence to demonstrate the continuous lawful use. This can include the combination of the following:

•             Copies of leases.

•             Electricity/gas bills for the 6 month period.

•             Where an informal arrangement exists redacted bank statements to show rent/rates have been paid.

•             Confirmation from a letting agent/solicitor advising of the period of occupancy.

•             An affidavit.

•             Photographs.

 

We will need further evidence of continuous use if it is not evident from the information supplied. We will not consider the existing floor space as deductible floor space, unless the applicant demonstrates this.

 

We have a duty to issue the liability notice as soon as is practicable so if we do not hear from you by the 21 April 2025, we will issue the notice based on our calculations."

 

All comments are appreciated.

[Tony L]

If I were you, I'd be asking the council for clarification on this, rather than Build Hub, but it looks to me as though this is just a standard letter they send out for the more usual circumstance of a new build replacing a dwellinghouse, rather than a barn.

 

Did you complete a CIL exemption form?  I expect different LAs may have different rules, but in my case, if I live in my new build for two years following completion, there's no CIL to pay, so whatever floorspace derived calculation has been made becomes irrelevant.

[Thorfun]

Do you have an architect helping you? Ours dealt with all the CIL stuff for us. 

[nod]

Give them a call 

We we’re sent a bill for 49k 

Which was sorted out over the phone 

[IanR]

47 minutes ago, Caroline said:

"... if you wish to offset existing floorspace we would require evidence of lawful use, please see the below:

 

 

It sounds like you were attempting to offset the new residential area with the existing agricultural area, for the purposes of CIL. Is that what you were attempting?

 

Unfortunately you can not do that - for the CIL calculation the council wants to know how much additional residential area is being created by the proposed development. You can only offset an existing residential area that you are demolishing for the proposed development.

Can I ask why you are not applying for self-build exemption? or are you and the council is confused?

Edited Thursday at 16:55 by IanR

[Caroline]

11 minutes ago, IanR said:

 

It sounds like you were attempting to offset the new residential area with the existing agricultural area, for the purposes of CIL. Is that what you were attempting?

 

Unfortunately you can not do that - for the CIL calculation the council wants to know how much additional residential area is being created by the proposed development. You can only offset an existing residential area that you are demolishing for the proposed development.  

Can I ask why you are not applying for self-build exemption? or are you and the council is confused?

They originally told me to complete a form 6 commencement of works CIL form and also a Self Build form 7 part 1.  I have looked on the government website and it says self builders who plan to live in property for at least 3 years are exempt.  I have sent this to the CIL dept asking why they want details about offsetting floorspace etc  We didn't know anything about offsetting the new residential area with barn (which is labelled on the planning application as Storeage Unit, not agricultural).  I think you are right, they are confused, but odd as they told me (and I have it in an email from them) what the process was and what forms to complete and submit and I have followed their guidance.

[bmj1]

 

36 minutes ago, Caroline said:

They originally told me to complete a form 6 commencement of works CIL form and also a Self Build form 7 part 1.  I have looked on the government website and it says self builders who plan to live in property for at least 3 years are exempt.  I have sent this to the CIL dept asking why they want details about offsetting floorspace etc  We didn't know anything about offsetting the new residential area with barn (which is labelled on the planning application as Storeage Unit, not agricultural).  I think you are right, they are confused, but odd as they told me (and I have it in an email from them) what the process was and what forms to complete and submit and I have followed their guidance.

 

It's really simple:

 

- they need to get the calculations right now

- so that if you fall out of qualification for self build relief at a layer date (e.g. you move out within 3 years of completion)

- then there is no ambiguity about what is owed.

 

If you call them they'll walk you through the process, in my case my planning consultant helped sort it also.

Edited Thursday at 17:44 by bmj1

[SBMS]

You do not NEED to provide offset calculations for the CIL. Say the council charges £100 per sqm CIL and you are building a 250 sqm new residence. Ordinarily you would be liable for £25k in CIL costs. 
 

if you are replacing existing buildings - say 100sqm - that are compliant for offsetting you can net that from the 250 to reduce your CIL cost by £10k. This is what your council is referring to I believe. However, it’s not mandatory and you can choose to forgo offsetting and just receive the 25k bill. The council will require evidence of the compliant usage to grant you the offset. So if it’s a bungalow, they’ll want pictures or google maps evidence of a bungalow. If it’s a barn - 

the same. 
 

And the final piece is no matter what your final CIL bill, based on the above, the entire amount can be reduced to zero if you are a self builder. So in many respects it is irrelevant what your final CIL charge is because it will be reduced to zero. Planning consultants will often advise you reduce it as much as possible using offsetting in the event you have to move within 3 years or you die as then the liability is owed. However this is up to you. 
 

Note that self build exemption is a very prescribed process. You must submit the application for exemption first and only once approved can you submit the commencement notice. You can’t submit it all at once. 
 

So in summary -

task 1 - agree what the CIL liability is by offsetting existing replaced floor space (if applicable and compliant)

task 2 - apply for your self build exemption based on the final CIL charge issued by the council above. 

[bmj1]

6 minutes ago, SBMS said:

You do not NEED to provide offset calculations for the CIL. Say the council charges £100 per sqm CIL and you are building a 250 sqm new residence. Ordinarily you would be liable for £25k in CIL costs. 
 

if you are replacing existing buildings - say 100sqm - that are compliant for offsetting you can net that from the 250 to reduce your CIL cost by £10k. This is what your council is referring to I believe. However, it’s not mandatory and you can choose to forgo offsetting and just receive the 25k bill. The council will require evidence of the compliant usage to grant you the offset. So if it’s a bungalow, they’ll want pictures or google maps evidence of a bungalow. If it’s a barn - 

the same. 
 

And the final piece is no matter what your final CIL bill, based on the above, the entire amount can be reduced to zero if you are a self builder. So in many respects it is irrelevant what your final CIL charge is because it will be reduced to zero. Planning consultants will often advise you reduce it as much as possible using offsetting in the event you have to move within 3 years or you die as then the liability is owed. However this is up to you. 
 

Note that self build exemption is a very prescribed process. You must submit the application for exemption first and only once approved can you submit the commencement notice. You can’t submit it all at once. 
 

So in summary -

task 1 - agree what the CIL liability is by offsetting existing replaced floor space (if applicable and compliant)

task 2 - apply for your self build exemption based on the final CIL charge issued by the council above. 

I would add, people can and do forget to discharge each of the CIL steps in the right order, and can inadvertently end up on the hook for the whole bill. There was a recent case of this for a buildhub member, and the councils can be really rigid on this.

 

So don't mess it up!

[Temp]

I think the CIL still has to be calculated even if you are exempt if that's what you are thinking.

Edited Friday at 12:53 by Temp