CIL Relief for Self-Build

Government announces plans to remove the burden of CIL payments from self build projects
Chris Bates, Editor of Build It magazine
by Chris Batesmith
15th April 2013

The Community Infrastructure Levy – fundamentally a tax on development – is set to be relaxed for self-build projects.

Budding self-builders across the country look to have received a huge boost this morning, following a government announcement that looks set to make it cheaper to build your own home.

Planning minister Nick Boles has revealed that the government is proposing to remove the burden of the Community Infrastructure Levy (CIL) on homes built or commissioned by individuals, families or groups of individuals that will be ‘for their own use and owner-occupied’.

“For too long, self-build homes have been seen as an option for only a privileged few,” said Nick Boles. “We are determined to change that with proposals that have the potential to save self-builders thousands of pounds.”

Currently, anyone building a home – whether developer or self-builder – could face payments of £1,000s or even £10,000s just for the privelege of developing a site with a new home or extension measuring over 100m2. Abolishing the charge for self-builders will make a huge difference to budgets – making one-off home building affordable and helping to make more plots viable for development.

“Our proposals would ensure that self-build homes are exempt from this levy, and will make an enormous difference to people looking to realise their dream of buying a plot of land and getting a builder to build them a home,” said Bowles.

According to a report on the Self-Build Portal, self-builders would be expected to ‘self certify’ their projects as being eligible for the removal of the CIL charge; although the exact details are yet to be cemented.

The news comes following extensive lobbying from the National Self-Build Association (NaSBA), which last year completed a survey on the effects of the CIL on potential self-builders. According to the survey, one in eight people considering building their own home had shelved their plans due to the additional financial burden of the Community Infrastructure Levy.

Ted Stevens, chairman of NaSBA said: “The suggested relief for self-builders is great news – though we still need to see the details of how it might work, to ensure the proposals are robust. If self-builders are going to be exempted from the Levy it will help kick-start work on a significant number of self-build homes that have recently been put on ice, and that can only be good for local economies and jobs.

The move is the latest in a series of government-led incentives to support self-build, including expanding the £30million Custom Build fund to include self-build groups (rather than just collectives applying via the Community Right To Build scheme).

Let us know how the removal of the CIL burden for self-builders will affect your home building plans in the comments box below!

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