CIL regulations and VAT claim and short term let?

[Zef]

We have finished our new build and been signed off and are currently processing the VAT claim, we've been granted CIL relief as it is our forever home, however we want to go away for a month in the summer and were thinking of renting our house for 30 days, my question is, is this permitted with regard to the VAT claim and CIL regulations? I know we have to live in the property for 3year for the CIL and we plan on staying in the house long term and I know you can't claim VAT if your build to sell or let as a business, but can we just let it for 30 days without losing our CIL relief or ability to claim VAT? I've searched online and on this forum but can't find any info on if this is allowed? TIA!! 

[nod]

Same answer as earlier 

[SBMS]

Yes, letting your house out for any period of time is explicitly listed as a disqualifying event in the legislation:

 

the letting out of a whole dwelling or building that is self-build housing or self-build communal development;

 

see https://www.gov.uk/guidance/community-infrastructure-levy?#para094

[andyscotland]

I am not a lawyer, and CIL is obviously something where you want to be extremely careful.

 

However, it seems to me that "letting out of a whole dwelling" would (for other legislation) normally mean situations where the property ceases to be your only/main home e.g. you move out and take tenants.

 

An Airbnb-style temporary arrangement where you charge people to share your home (even if you happen to be on holiday at the time) might not be the same thing.

 

I wouldn't take any risks but if the money is significant to you it might be worth getting professional advice or asking the council for an exact interpretation of that clause before writing off the idea.

[nod]

If you carryon with the Counsul tax and utilities in your name Who would know Apart from us on here 😁

Im presuming that you would be including CT and utilities in your very short term let 

[SBMS]

17 minutes ago, nod said:

If you carryon with the Counsul tax and utilities in your name Who would know Apart from us on here 😁

Im presuming that you would be including CT and utilities in your very short term let 

Agreed! But thought I’d contribute the actual law which is that any letting out (and your neighbours for example decided to let someone at council know!) would trigger the CIL. But like @nod says if no one knows then it’d be unlikely anyone would enforce. Just go into it eyes wide open and accept the risk 👍

[torre]

I agree with @SBMS that this is a disqualifying event, whether you want to take the risk for a 30 day holiday let versus a probably 5 figure CIL charge plus 20% penalty for failing to notify a disqualifying event depends on your own appetite for such risks - if you're advertising on a site like Airbnb there's a clear evidence trail for someone to find. If you've any awkward neighbours that adds to the chances of someone making trouble. 

 

I think you can rent out a room, take in a lodger, but not let out the whole place, regardless of time period

[Alan Ambrose]

Well there’s the CIL law https://www.legislation.gov.uk/ukdsi/2010/9780111492390/contents and your own council’s ‘interpretation’.

 

I can’t see any harm in actually asking your LDC’s CIL people. If they say it’s no problem, then you have that on record. My local ones are actually fairly helpful and responsive.

[Bonner]

Holiday exchange or house sitting should be allowed, somehow avoid any arrangement which could be construed as ‘letting out’?
Otherwise, I would agree with @Alan Ambrose, talk to your LA CIL officer. And by talk I mean on the phone, not an email, you can get a completely different answer through dialogue (by all means follow up with an email for the record).

[Temp]

I'm not very familiar with AirBnB but aren't there two types of letting on most  platforms... One where you have the whole place to yourself and one with a live in landlord? It might be important which you advertise is as.

 

Personally I wouldn't risk it unless you can get a definitive answer.

[Temp]

For some reason I can't copy and paste a link on this phone but search for the thread..

 

CIL exemption revoked due to lodgers

[Mr Punter]

I think the VAT may be OK but you may lose your cil exemption.  Bear in mind you may also need to gain approval from your insurers and mortgage company and you would need a cast iron guarantee that they would vacate and leave the property as they found it.  For the sake of a months rent and the hassle of letting, combined with the double risk of the taxes it is probably best left empty.