CIL exemption
QWe are self-builders and planning to apply for exemption from the community infrastructure levy (CIL) payment.we are in the process of purchasing a plot which currently has planning permission, subject to a condition to undertake a site investigation report, complete any remediation works and to remove the asbestos. The current owners have agreed to undertake the works required to ensure that the site is free from contamination but there is a risk that this could trigger the CIL payment if it results in anything which may constitute demolition.we thought the best solution would be to submit a commencement notice (after purchase) before any decontamination commences. Our concern is that it is our intention to apply for an alternative planning permission; in which case, how do we ‘close’ the original CIL process in order to follow a fresh application, having already served a commencement notice? We are literally going round in circles — the local CIL officer is pretty evasive saying it ‘raises issues’. Please can you advise what process we should follow in order to avoid paying CIL in this situation and any pitfalls we may risk encountering.
JAMES AND EMMA
To avoid any risk of losing the self-build exemption for CIL you should avoid commencing the development until you have the exemption in place for what you actually want to build. Negotiate a legal agreement with the vendor that allows the demolition and asbestos removal works to be deferred until you have your new permission approved and have confirmation that the selfbuild exemption has been applied. One option would be to negotiate a retention on the sale price for an agreed sum that reflects a reasonable valuation of the demolition and decontamination works required, with any net difference reconciled on completion of the works.
The vendor will most likely expect the existing CIL liability notice to be transferred into your name but it will not be triggered providing the consent is not commenced. Once approved, a new CIL liability notice will be issued in your name, for the new planning permission. Both the existing and new CIL liability notices can co-exist independently.you must apply for the self-build exemption before commencement of the new permission and comply with all of the guidance precisely to avoid forfeiting part or all of the relief.this includes issuing a commencement notice prior to work starting.
If you decide to amend the existing planning permission, rather than apply for a new independent permission, under Section 73A of the Town and Country Planning Act 1990, (varying the conditions to allow minor amendments to the approved drawings), then a new CIL liability notice will be issued reflecting any net changes to the gross internal area (GIA) of the plans relative to the original permission.the method for calculating the difference is very complex, but should be immaterial providing the original planning permission has not commenced, as you will be eligible to apply for full relief for the new CIL liability under the self-build exemption. MICHAEL HOLMES, SELF-BUILD EXPERT