An End to Self Build Tax

On 15 April 2013 the Government have announced that it proposes to exempt self builders from paying the Community Infrastructure Levy (CIL).  The changes are likely to come into effect during the summer after a 6-8 week consultation.

The CIL was introduced under the Labor Government and was implemented by some councils in January 2012.  The CIL raised a levy on new homes set at a standard charge per m2 of new development.  On average self builders and developers were being asked to pay an additional 10-15% onto build costs and in some areas this charge was significantly higher.

CIL was originally designed to replace the complicated (and fully negotiable) raft of local planning obligations such as Section 106s and Affordable Housing Contributions, which will still affect self builders.

Details for the exemption have not yet been finalised but is expected to involve self builders declaring their projects as non-speculative before commencement and will have to provide evidence as the project completes as well as a set period of occupation whcih will require proof of Council Tax payments. 

These changes will only apply to Local Authoritis in England.