Build It

Will I have to pay the CIL on my project?

-

I own an end-of-terrace house, which has a plot of land to the side, for which I have recently received planning permission to build a semi-detached property. Once it is completed, my plan is to keep it and either live in it or let it. I am currently in the process of separating the title deeds so that each dwelling sits on its own site.

Looking through the Community Infrastruc­ture Levy

(CIL) exemption applicatio­n form, it asks whether this home would be a new build or whether it would be adding floorspace to an existing residence. I do not understand what this would be in my situation and also what the impact would be from a CIL exemption point of view.

Is my project a new build or an addition of m2 to an existing abode? In either scenario, am I eligible to pay?

If you build a new home as your principal private residence, then you are entitled to seek a CIL exemption. As this will be a new dwelling with a separate title, then the relationsh­ip to the other property is immaterial – the additional m only comes into play when you are adding to or extending an existing residence. So, despite the fact it will share a party wall with your current house, everything is new build for the purposes of CIL.

e problem comes, however, if you want to rent it out or sell it on. Under the CIL process, you must declare that your new home will be your main residence and that you will live in it as such for at least three years. If you sell it on or let it out before then, you will become liable for the CIL that would have been payable.

erefore, if you want to avoid the charge, you will need to remain living there for at least three years.

 ??  ??

Newspapers in English

Newspapers from United Kingdom