Home builders exempt from paying CIL in Trafford after 7th July 2014

The Community Infrastructure Levy (CIL) was brought into effect by the Planning Act of 2008

and since then has had a detrimental and prohibitively expensive effect on self builders, as the levy on all new homes was raised by a standard charge per m2 of new development.

On average, the levy, which would of been applied to self builders and developers, would incur an additional expense on a residential building project over 100/m2 of anywhere from £20 to £80/m2 depending upon the area of the build. In areas such as Hale, Altrincham and Bowden the charge would typically be higher than other areas.

In many cases self builders were being faced with invoices for £20-40,000 as a condition of being granted planning approval. At Arc Design Services most houses and extension designs are over 100/m2 meaning a lot more time spent applying for applications.

Trafford Council will be the first authority in Manchester to begin charging the levy. The good news for self builders and custom builders’ clients in Trafford, is that any applications approved after 7th July 2014, are now exempt from paying this tax if they meet certain criteria. The decision has come after the government announced back in September 2013 they would be putting into place measures to encourage more self build properties. You can read our previous blog about the strategy to help get more people self building here.

However, the exemption from CIL is only applicable if the property is being built or commissioned by an individual or group of individuals for themselves and not for resale as the property should be occupied by the owner.

Self or custom builders will need to apply for a CIL exemption and receive a notice back from Trafford Council before any work can commence. Once the development has been completed a second form needs to be completed within 6 months. This is where the self builder will need to produce 4 types of documentary evidence to prove they will be inhabiting the property for at least 3 years and that it was a eligible self-build project.

Should the applicant decide at any point that the project will not be a self build, they should inform the charging authority and pay the levy. Failure to do so would result in a surcharge.

Ted Stevens, Chairman of NaSBA (National Self Build Association) has said ‘A recent survey indicated that 1 in 8 self-builders were put off from starting their project by the CIL charge. As a result, this exemption should lead to at least 2,000 - 3,000 homes coming back off the shelf’.

Arc Design Services are also proud to announce we are now recognised as an Accredited Planning Agent by Trafford Council. Using our proven track record for submitting quality applications we can support you through the application process, so if you put off your self build home because of the CIL Levy and would like to revive the plans please get in touch with Arc Design Services today!

26a Victoria Road, Hale
Altrincham, Cheshire, WA15 9AD
United Kingdom