CIL form question

[Susana]

Hello, I am currently filling in my CIL form for the planning application. We are proposing to build a house on our existing garden. We will still retain our main home on the site but will split the plots once the new house is built, on the CIL form, no. 7 Existing buildings: asks how many existing buildings on the site will be retained….Does this mean on the new plot or does this include my main house? Do I have to tick yes as we are retaining our house?  Sorry if the question is a silly question I just want to make sure I don’t make a mistake. Thank you I’m advance 😊

[nod]

The Cil form is trying to establish if the new house will become your main residence To see if you are exempt or not 

[Susana]

41 minutes ago, nod said:

The Cil form is trying to establish if the new house will become your main residence To see if you are exempt or not 

Oh I see, so do I add that there is an existing property on the site? Or are they referring to the plot where I will be building the additional dwelling? Thank you 

[Bonner]

I am quite sure the ‘site’ in question is the new plot however this is something you can’t afford to get wrong! I would phone your local authority to double check, preferably getting it confirmed in an email.

[nod]

23 minutes ago, Bonner said:

I am quite sure the ‘site’ in question is the new plot however this is something you can’t afford to get wrong! I would phone your local authority to double check, preferably getting it confirmed in an email.

It is 

Each one that I’ve filled in I’ve followed up with a phone call a couple of days later 

[FarmerN]

Is the "plot" clearly defined in the PP application, is the existing house within the "plot" ?

[Susana]

15 hours ago, FarmerN said:

Is the "plot" clearly defined in the PP application, is the existing house within the "plot" ?

Hi yes the new plot is clearly defined. It will be completely separate from the existing house. Thank you all so much, I will phone them tomorrow just to make sure, I just wanted to fill in the form today so it’s ready. Thank you 

Edited Sunday at 10:26 by Susana

[mjc55]

I found when dealing with the CIL department in Dorset that they were very helpful and happy to answer questions regarding what site clearance etc. we were allowed to do before planning was obtained.  Obviously YMMV but I am sure that a phone call will clear up any confusion.  Be sure to ask for anything that they say to be confirmed in writing though so you may keep for your records.

[Susana]

On 17/05/2025 at 20:11, FarmerN said:

Is the "plot" clearly defined in the PP application, is the existing house within the "plot" ?

Hi, I have just been reading up on the CIL and have a few questions. We are planning to rent the house we will build and we will continue to live in our own house. We won’t split the plots unless we sell house in the future, but we have drawn it in the plans as a separate plot. Have we done this wrong with regards the CIL? Should we have not drawn it as a separate plot? Does this mean I should include my house as in use and add the square meters? Will this make matters worse in terms of the amount I have to pay?  I am so confused and don’t want to get I wrong. We’ve only been in the house for 4 months. Thanks and so sorry for all the questions. 

[EdHat]

Sounds like it won't qualify for the self build CIL exemption and you may also have to pay capital gains tax when you come to sell as it won't be your principle residence. Make sure you properly look into this as it's likely to be tens of thousands of pounds savings you are missing out on by not moving into the new build. 

[Temp]

1 hour ago, Susana said:

We are planning to rent the house we will build and we will continue to live in our own house.

 

Sorry but...

 

a) You may not be able to reclaim the VAT. There is a difference between zero rated for VAT and exempt from VAT... The eventual sale or long lease (over 21 years?) of a house is zero rated so your input VAT (the VAT on the build cost) can be reclaimed. However rent is exempt from VAT and you cannot reclaim input VAT in that case. Many developers have come unstuck when they found they couldn't sell a house(s) and decided to rent them out instead. I think there might be ways around this, perhaps if the house is "sold" to a company you set up before it's first rented out? That might have other consequences. Seek advice. See also...

 

https://www.bishopfleming.co.uk/insights/vat-consequences-interim-rental-new-residential-property

 

https://www.macfarlanes.com/what-we-think/2017/build-to-rent-vat-issues/

 

b) You will be liable for the CIL if you don't live in it as your principle residence for 3 years. I don't think splitting/not splitting the land will make a difference. The issue is the house will have planning permission for it to be "separately occupied" and when rented out it will most likely be classed as separately ococcupied, rather than occupied by you. Tenants also have rights in this regard. It might be different if this was just a bedroom in an outbuilding and the renter shared the kitchen in your house or similar. 

 

I don't think any councils exempt "holiday homes" from the CIL if that's how you were going to market it. These days many charge double council tax on them.

 

c) Your mortgage company may also have an issue with this. They tend to have different rules/products on lending for owner occupiers compared to "investment properties" such as build-to-rent.

 

Afraid it's all a bit of a minefield. Perhaps you should decide to build this house for yourself and live in it for some years. Would make life a lot simpler.

 

Edited Sunday at 22:51 by Temp

[Susana]

2 hours ago, EdHat said:

Sounds like it won't qualify for the self build CIL exemption and you may also have to pay capital gains tax when you come to sell as it won't be your principle residence. Make sure you properly look into this as it's likely to be tens of thousands of pounds savings you are missing out on by not moving into the new build. 

Thank you. I appreciate I won’t qualify for the exemption but wanted to know if I could qualify for a reduction if my main house in on the plot and we live in it. I have read that this may be the case. Just wondered if I should be putting planning through with the red line around the whole site or should I be applying as a separate plot? As I don’t intend to sell it anytime soon splitting the land is not urgent. Although I’m not sure how a long term rental would work if the land isn’t split?