Self Build Exemption for CIL

The full amount of CIL is payable unless you claim an exemption for a self-build. This must not be skipped prior to commencement of works. If works start and the relief has not been claimed your forfeit the right to the relief.

Each exemption will have its own qualifying requirements – you must meet each requirement and continue to do so beyond the completion of the build. If you sell the property, you will be liable for the full amount.

Check out our popular frequently answered questions page.

See our new CIL flowchart (CIL Flowchart PDF will open in a new tab) to understand the process.

 

 

New Dwelling

 

You can apply for exemption from CIL if you are building your own home, and intend to live in it as your main residence.

To make a claim, you must:

• assume liability to pay CIL via Form 2
• certify that the scheme will meet the criteria to qualify as self build development using Form 7 Part 1
• submit a Commencement Notice, before development commences
• within 6 months of completion, send the local authority evidence to confirm the project is self build using Form 7 Part 2

When completing Form 2 you must supply certain evidence:

• A compliance certificate for this development (building completion notice, compliance certificate),
• Title deeds of the property to which this exemption relates (freehold or leasehold) and
• Council Tax bill or certificate along with two of the following items – Utility Bill, Bank Statement or Local electoral roll registration

In addition, you must also provide a copy of one of the following:

• An approved claim from HM Revenue and Customs under ‘VAT431NB: VAT refunds for DIY housebuilders’
• Proof of a specialist Self Build or Custom Build Warranty for your development
• Proof of an approved Self Build or Custom Build Mortgage from a bank or building society for your development

The forms are available using the links below:

• Form 7: Self build exemption claim form Part 1
• Form 7: Self build exemption claim form Part 2

If the required evidence is not submitted to the local authority within the 6 month time period, the full levy charge becomes payable.

It is important that you don’t begin work until you submit your application for exemption and you receive notice from the local authority with 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 the local authority can charge the full amount for CIL.

If you receive exemption, and then sell, or rent out, your home within 3 years of the house being completed, the local authority will charge you the full CIL amount. CIL is registered as a land charge.

Further advice is available on the Government site here.

 

Residential annex

 

You can apply for exemption from CIL if you are building a residential annex. To qualify for an exemption you must have a material interest in the main dwelling, occupy the main dwelling as your sole or main residence and the annex must be built within the curtilage of the main residence and comprise one new dwelling.

Claims for self build residential annex exemption should be submitted on CIL Form 8, which can be found using the link below.

• Form 8: Residential Annex Exemption claim form

You must also assume liability to pay CIL and submit a Commencement Notice prior to development starting.

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. If you receive exemption and then use the main house for a purpose other than a single dwelling, let out the annex separately, or sell either the main dwellings or the annex separately from the other, then you will be charged the full amount for CIL. CIL is registered as a land charge and so if any of these disqualifying events occur within three years from the date of completion the local authority can revoke and exemption made and the full CIL charge will be due.

Further advice is available on the Government website here.

 

Residential extension

 

If the new build floorspace of your residential extension is 100 sq m or more, then you will be liable for CIL. Residential extensions below 100 sqm are already exempt from the levy under the minor development exemption as part of Form 1. Therefore you must claim relief if your extension of over 100 sq m qualifies.

You can apply for exemption from CIL if you are building a residential extension. To qualify for an exemption you must have a material interest in the main dwelling, occupy the extended dwelling as your sole or main residence and the extension must be an enlargement to the main dwelling only and not comprise a new dwelling.

Claims for a self build exemption for a residential extension should be submitted on Form 9: Self Build Residential Extension Exemption Claim Form. This form is available using the link below.

• Form 9: Residential Extension Exemption claim form

You must assume liability to pay CIL and submit a Commencement Notice before starting any work, otherwise the full amount of CIL will be payable.

Further advice is available on the Government website here.

 

Don’t forget!

 

It is important that you don’t begin work until you submit your application for exemption and you receive notice from the local authority with 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 the local authority will charge the full amount for CIL.

The local authority can also impose surcharges, in addition to the full CIL charge. So it is important to get these details correct.

You have the right to appeal against a grant of exemption under Regulation 116A and 116B for either a residential annex or a new dwelling whole house. Appeals should be made to the Valuation Office Agency. This must be done within 28 days of the decision notice from the local authority. Commencing work at any time, will invalidate the appeal if this has not been decided.

 

 

CIL self build exemption page updated: 29th March 2025