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CIL Exemption Warning


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It's been said before, but to qualify for the CIL exemption you have to follow a strict process. Including notifying the council of your commencement date. 

 

Well apparently the regs on this are contradictory....

 

https://www.theguardian.com/money/2019/jan/27/a-24000-penalty-for-failing-to-submit-one-piece-of-paper-to-the-council

 

The problem is an obscure technicality. Deep amid the small print is regulation 42B (6) which states that the exemption will be revoked if the homeowner fails to return a “commencement notice” which notifies the council that the works are due to start.

 

Even deeper is an apparently contradictory regulation 67 (1A), added in 2014, stating that exempted residential extensions don’t require to file this notice.

 

Best file a commencement notice anyway.

 

 

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Sadly I’m not surprised. 

 

And send it by recorded delivery and confirm that the council has received it 

 

https://www.blakemorgan.co.uk/news-events/blog/cil-commencement-notices-proof-postage/

 

And ensure that you use the form, not an informal method 

 

https://blogs.lexisnexis.co.uk/content/built-environment/self-builder-stung-with-huge-penalty-for-invalid-cil-commencement-notice

 

And a LA view and reference to a check of self builds that have started without submitting the form. 

 

https://www.khub.net/web/planningadvisoryservicepas/forum/-/message_boards/message/29966092

 

 

 

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  • 2 weeks later...

Hi all,

We will be applying for planning permission in a couple of weeks time and not wanting to fall into the trap, can anyone let me know the correct timings for what I believe is a 4 part document.

 

Form1: Assume liability form

Form 2: Claim exception form

Form 3: Commencement form

Form 4: Confirmation of details form.

 

Thanks,

Geoff

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The commencement form has to be received by the council not later than a day before you start ANY work on site. Ideally ensure that you send registered post and ask for confirmation of receipt. 

 

Bear in mind the documents that you need to return with form 7 (exemption form part 2) that has to be returned within 6 months of the completion certificate being issued. In section B you have to provide one of the following:

  • (a) An approved claim from HM Revenue and Customs under `VAT431NB: VAT refunds for DIY housebuilders'
  • (b) Proof of a specialist Self Build or Custom Build Warranty* for your development
  • (c) Proof of an approved Self Build or Custom Build Mortgage# from a bank or building society for your development.

 See the full form here:

 

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

 

If you aren’t intending on getting b or c then it only leaves the VAT reclaim. If you don’t get that approved by HMRC you could be in trouble plus when I sent mine (within 3 months of the completion certificate) HMRC took 20 weeks to approve the claim which would have been longer than 6 months after the completion certificate. I didn’t have CIL to worry about but I wonder what would happen if someone was unable to evidence the claim in 6 months. I imagine some councils may decide to take a ‘not compliant’ view even though HMRC’s speed of processing a claim is outside your control. 

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+1

 

The key it that your exemption must be granted and your notice of commencement received before you start work on site. Best ask the council to confirm receipt in writing (include an SAE?) rather than relying on using a signed for delivery service. Our planners signed for brick samples, lost them and the person that signed for them couldn't be identified from the sig.

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Hi all, bit of a stupid question , but it's my English =stupid foreigner :

I am writing the Commencement Notice atm and the second section of it says:

 

"Details of collecting authority to whom the notice is being sent"

 

(https://ecab.planningportal.co.uk/uploads/1app/forms/form_6_commencement_notice.pdf)

 

 

What/who do they mean? Should I put Name of the Support Officer for the CIL case in there and the authority?

Please enlighten me.

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