PLANNING INSIGHT: CIL EXEMPTION – REGULATION UPDATE
by JAMES PODESTA
The CIL (Community Infrastructure Levy) is something that local authorities can choose to charge on new developments in their area. The money is used to fund infrastructure that the council, local community and neighbourhoods want.
Some developments that our clients are involved in may incur this levy. However, this month, the Government’s online planning guidance (National Planning Policy Guidance (NPPG)) was updated and states a number of new exemptions.
• the main dwelling must be the person’s principal residence, and they must have a material interest in it;
• residential annexes are exempt from the levy if they are built within the curtilage of the principal residence and comprise one new dwelling; and
• residential extensions are exempt from the levy if they enlarge the principal residence and do not comprise an additional dwelling.
There is no requirement for the occupier of the annex to be related to the owner of the main dwelling, or to commit to staying there for a specified period. But letting the residential annex, or selling it separately from the main dwelling, within the 3-year claw-back period which commences from the date of the compliance certificate relating to the residential annex, will result in the exemption being withdrawn.
This means that clients that are looking to extend their house or provide an annex within the curtilage would be exempt from paying the CIL.
This is good news if they are seeking to increase floor space or provide guest / staff accommodation and don’t want to be hit with a CIL charge for doing so.
This may provide a more economically efficient way to increase the size of the principle residence or provide residential accommodation for staff, guests or family members.
If you are thinking of extending your principle residence or are looking to build an annex for staff, guests or family, we will be able to provide you with an expert understanding of the planning implications and CIL exemptions.