Does my development qualify for an exemption or relief from CIL?
Exemption or relief can only be claimed if the claimant is an owner of a material interest in the relevant land.
Information on each exemption and relief can be found below, with links to the forms that need to be returned to us:
On this page:
Exemptions for minor development
Development which creates one or more new dwellings will be charged CIL irrespective of the floorspace created.
Development proposals which create less than 100 square metres of gross internal area of new build (such as residential extensions less than 100 square metres of new build) will be exempt from CIL and will not be charged.
Residential extension exemption
The residential extension exemption will apply to anybody who builds (or commissions from a contractor, house builder or sub-contractor to build) an extension to their home.
To claim this you must own the property and occupy it as your principal residence for a minimum of three years after the work is completed.
Form 9: Residential Extension Exemption Claim
Important information
Do not begin work until you submit your application for exemption and receive a decision. If you start any work, including digging foundations, your application for exemption will be refused.
You must assume liability to pay CIL and submit a commencement notice prior to development starting. If you fail to submit a commencement notice before starting any work, then the full chargeable amount for CIL will become immediately payable.
Disqualifying events
CIL is registered as a land charge and if any disqualifying events occur within three years from the date of completion, we can revoke exemptions and the levy will then be due immediately. We can also impose surcharges, in addition to the full CIL charge.
Residential annexe exemption
The residential annex exemption will apply to anybody who builds (or commissions from a contractor, house builder or sub-contractor) a residential annex within the grounds of their own home.
To claim the CIL self-build exemption for a residential annex, you must own the property and occupy it as your principal residence for a minimum of three years after the work is completed. There is no requirement for the occupier of the annex to be related to the owner of the main house, or to commit to staying there for a specified period.
Form 8: Residential Annex Exemption Claim
Important information
Do not begin work until you submit your application for exemption and receive a decision. If you start any work, including digging foundations, your application for exemption will be refused.
You must assume liability to pay CIL and submit a commencement notice prior to development starting. If you fail to submit a commencement notice before starting any work, then the full chargeable amount for CIL will become immediately payable.
Disqualifying events
CIL is registered as a land charge and if any disqualifying events occur within three years from the date of completion, we can revoke exemptions and the levy will then be due immediately. We can also impose surcharges, in addition to the full CIL charge.
The disqualifying events for this exemption are:
- the main house is used for any purpose other than as a single house
- the annex is let, or
- either the main residence, or the annex, is sold separately from the other
Self-build exemption
Individuals and communities who want to build their own homes can claim an exemption from CIL.
This exemption can be applied for by an individual who intends to build (or commission) the building of a new house and intends to occupy the house as their sole or main residence for the duration of the clawback period, and has assumed liability to pay the CIL.
The exemption can be applied for with respect to self-build communal development if the development is for the benefit of the occupants of more than one self-build house. You must assume liability to pay CIL before applying for the relief.
Form 7: Self-Build Exemption Claim - Part 1
Important information
Do not begin work until you submit your application for exemption and receive a decision. If you start any work, including digging foundations, your application for exemption will be refused.
If you fail to submit a commencement notice before starting any work, then surcharges will be applied.
You are required to submit further information upon completed (full details of what is required can be found on the forms). If this evidence is not submitted to us within the 6-month time period, the full levy charge becomes payable.
Form 7: Self-Build Exemption Claim - Part 2
Disqualifying events
CIL is registered as a land charge and so if any disqualifying event occurs within three years, we can revoke exemptions and the levy will then be due immediately (eg if you receive an exemption and then sell, or rent out, your home within three years of the house being completed, we will charge you the full CIL amount immediately). We can also impose surcharges, in addition to the full CIL charge.
The disqualifying events for this exemption are:
- any change which means the building/development ceases to meet the criteria of a self-build house or communal development
- failure to comply with the evidence requirements on completion
- the building/development is let out
- the building/development is sold
Social housing relief
Development proposals which comprise qualifying social dwellings (in whole or in part) are eligible for relief from liability to CIL.
To qualify for relief, the claimant must own a material interest in the relevant land (the area granted planning permission) and have assumed liability to pay the levy for the whole chargeable development.
A claim for this relief must be made by submitting a CIL Claiming Exemption or Relief form to us before commencement of the development. A claim for relief will lapse if the chargeable development to which the claim relates is commenced before we have notified the claimant of its decision on the claim.
When applying for social housing relief, please state which criteria of Regulation 49 you are meeting and applying under.
Further information can be found in the CIL Relief document.
Further social housing information
Further Social Housing Relief: Form 12
Charitable relief
Development proposals owned by charities are exempt from CIL if they meet certain criteria. The owner of a material interest in the land is exempt if they are a charitable institution and the chargeable development will be used, wholly or mainly, for charitable purposes.
To qualify for any charitable relief, a charitable institution is defined as:
- a charity
- a trust of which all the beneficiaries are charities or
- a unit trust scheme in which all the unit holders are charities
The above does not apply where:
- that part of the chargeable development to be used for charitable purposes will not be occupied by or under the control of a charitable institution
- the material interest is owned by the aforementioned owner jointly with a person who is not a charitable institution or
- exemption of the owner from liability to pay CIL would constitute a state aid
- relief must be applied for before the commencement of the development to which it relates
Further charity relief information
Further Charitable Relief: Form 12
Varying a planning application which has been granted a CIL exemption
In certain cases, if a person needs to amend their planning permission through a section 73 permission, they may still be eligible for the exemption (see regulation 58ZA inserted by the 2019 Regulations). If the amount of the exemption has not changed, you can apply to have the exemption transferred over to the 'amended' planning permission. You must submit CIL Form 13: Further Exemption Claim to request the transfer when you submit the section 73 permission.
This provision applies to exemptions for residential annexes and extensions; self-build housing; charitable relief and social housing relief.
Where the value of the exemption or relief has changed, the person would have to submit a new claim for a new exemption or relief.
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